Saudi Press

Saudi Arabia and the world
Thursday, Feb 02, 2023

SABIC, Aramco, Sinopec to assess viability of developing petrochemical complex

SABIC, Aramco, Sinopec to assess viability of developing petrochemical complex

Saudi Basic Industries Corp. has signed a memorandum of understanding with energy giant Saudi Aramco and China Petroleum & Chemical Corp., known as Sinopec, to assess the economic and technical feasibility of developing an integrated petrochemical complex with an existing refinery in Yanbu.
In a statement given to the Saudi Stock Exchange, SABIC noted that this MoU would be valid for 18 months.

The signing of the MoU comes just a few days after China reinforced its relationship with Saudi Arabia during Chinese president Xi Jinping's visit to the Kingdom.

Jinping noted that China will also expand oil trade with Saudi Arabia and added that his visit will act as a historic milestone for Chinese relations with the energy-rich Middle East.

Apart from the deal with SABIC, Sinopec, in December, also signed a framework agreement with Saudi Aramco to build a Phase II 16 million-ton-a-year refining project and 1.5 million-ton-year ethylene units in Gulei, Fujian.

“These projects represent an opportunity to contribute to a modern, efficient and integrated downstream sector in both China and Saudi Arabia. They also underpin our long-term commitment to remain a reliable supplier of energy and chemicals to Asia’s largest economy,” said Aramco Senior Vice President of Downstream, Mohammed Y. Al Qahtani, in a statement.

Aramco said the announcements support its role as a reliable energy supplier to China as the company seeks to expand its liquids to chemicals capacity to up to 4 million barrels per day by 2030. The statement also added that the collaboration also aligns with Sinopec’s vision to become a world-leading energy and petrochemical corporation, providing quality products and reliable energy.

Sinopec President Yu Baocai, earlier in a statement, said that its cooperation with Saudi Arabian entities is “a new milestone achieved through the existing collaboration that demonstrates mutual trust and recognition of all parties, and strengthens their confidence to jointly cope with the energy transition.”

Earlier in November, SABIC, along with Saudi Aramco signed an initial agreement with Poland’s refining company PKN Orlen to explore the potential of joint investments in petrochemical projects in Poland and other European markets.

Last month, SABIC announced that it intends to set up a plant to convert crude oil into petrochemicals, capitalizing on growing demand.

In a statement given to Tadawul, SABIC noted that the crude-to-chemicals complex located in Ras Al Khair is expected to convert 400,000 barrels per day of oil into chemicals.

Saudi Aramco owns 70 percent stakes in SABIC and has been investing billions of dollars in downstream projects and petrochemical facilities.

Earlier in December, Saudi Aramco partnered with French oil major TotalEnergies to build a petrochemical facility in Saudi Arabia with an estimated investment of around $11 billion.

A joint press release issued by the companies noted that the petrochemical facility named ‘Amiral’ will be owned operated and integrated with the existing SATORP refinery located in Jubail on the eastern coast of the Kingdom.

The construction works in the Jubail petrochemical facility will begin in the first quarter of 2023, and are expected to become operational by 2027. The facility is also expected to create over 7,000 direct and indirect jobs.

Related Articles

Saudi Press
WARNING GRAPHIC CONTENT - US Memphis Police murdering innocent Tyre Nichols
Almost 30% of professionals say they've tried ChatGPT at work
Interpol seeks woman who ran elaborate exam cheating scam in Singapore
What is ChatGPT?
Bill Gates is ‘very optimistic’ about the future: ‘Better to be born 20 years from now...than any time in the past’
Tesla reported record profits and record revenues for 2022
Germany confirms it will provide Ukraine with Leopard 2 tanks
Prince Andrew and Virginia Giuffre Photo Is Fake: Ghislaine Maxwell
Opinion | Israel’s Supreme Court Claims a Veto on Democracy
Moonwalker Buzz Aldrin Gets Married On His 93rd Birthday
Who’s Threatening Israeli Democracy?
Federal Reserve Probes Goldman’s Consumer Business
China's first population drop in six decades
Microsoft is finalising plans to become the latest technology giant to reduce its workforce during a global economic slowdown
Saudi FM discusses Kingdom’s economy, oil, Iran and US ties in Davos
Israelis rally in three cities against Netanyahu legal reforms
China's foreign ministry branch in Hong Kong urges British gov't to stop the biased and double standards Hong Kong report
Tesla slashes prices globally by as much as 20 percent
1.4 Million Copies Of Prince Harry's Memoir 'Spare' Sold On 1st Day In UK
After Failing To Pay Office Rent, Twitter May Sell User Names
Lisa Marie Presley, singer and daughter of Elvis, dies aged 54
FIFA president questioned by prosecutors
Britain's Sunak breaks silence and admits using private healthcare
Saudi Arabia plans to use domestic uranium for nuclear fuel
Mohammed Bin Salman chosen most influential Arab leader of 2022
Hype and backlash as Harry's memoir goes on sale. Unnamed royal source says prince 'kidnapped by cult of psychotherapy and Meghan'
United Arab Emirates says it will teach Holocaust in schools
Saudi Arabia set to overtake India as fastest-growing major economy this year 
International medical experts speak out against COVID-19 restrictions on China
Google and Facebook’s dominance in digital ads challenged by rapid ascent of Amazon and TikTok
FTX fraud investigators are digging deeper into Sam Bankman-Fried's inner circle – and reportedly have ex-engineer Nishad Singh in their sights
TikTok CEO Plans to Meet European Union Regulators
France has banned the online sale of paracetamol until February, citing ongoing supply issues
Japan reportedly to give families 1 million yen per child to move out of Tokyo
Saudi Arabia’s female ambassadors: Who are the five women representing the Kingdom?
Almubarak named ‘The Best Central Bank Governor of the Year 2023 for the Middle East’
Hong Kong property brokerages slash payrolls in choppy market
U.S. Moves to Seize Robinhood Shares, Silvergate Accounts Tied to FTX
Effect of EU sanctions on Moscow is ‘less than zero’ – Belgian MEP
Dubai announces $8.7 trillion economic plan to boost trade, investment and global hub status
Coinbase to Pay $100 Million in Settlement With New York Regulator
FTX assets worth $3.5bn held by Bahamas securities regulator
A Republican congressman-elect is under investigation in New York after he admitted he lied about his education and work experience.
Brazilian football legend Pele, arguably the greatest player ever, has died at the age of 82.
Hong Kong to scrap almost all its Covid rules
EU calls screening of travellers from China unjustified
US imposes Covid testing for visitors from China
Ukraine President Volodymyr Zelenskyy Addresses Joint Session of Congress - FULL SPEECH
Where is Rishi? Chancellor Jeremy Hunt's excuses about the UK's economic challenges just don't make sense
Former FTX CEO Bankman-Fried finally arrested in Bahamas after U.S. files charges