Saudi Aramco, Sinopec launch $9.8B refining joint venture in China: Report
New refining, petrochemical complex to include about 30 chemical manufacturing units in addition to refinery that can handle 16M tons of petroleum yearly, to be finished by 2030, Caixin reports
ISTANBUL
Saudi Aramco is working with China's Sinopec in a joint venture to construct and run a new refining and petrochemical complex in the southeast Chinese province of Fujian, set to cost 71.1 billion yuan ($9.8 billion), Chinese business outlet Caixin Global reported Wednesday.
With Saudi Arabia ranking second only to Russia as a supplier of crude oil to China, the world's second-largest economy is increasingly seeking to obtain the raw resources required to fuel its industrial aspirations.
With agreements in petrochemicals and refining, the oil tycoon hopes to find long-term consumers for its crude, according to the report.
Aramco is also a significant downstream investor in China. A top team from Saudi Arabia traveled to China last month with the goal of boosting commerce and investment between the two nations.
The Fujian complex, which is anticipated to be finished by 2030, will include about 30 chemical manufacturing units in addition to a refinery that can handle 16 million tons of petroleum yearly.
The downstream president of Aramco said in a statement that the business anticipates a large increase in demand in China's petrochemicals industry.
