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Aramco to form JV with China’s Sinopec: Saudi Aramco and China’s state-owned Sinopec inked an agreement to establish a joint oil logistics venture (JV) with a registered capital of USD 3.95 bn (c. CNY 28.8 bn), Reuters reports, quoting Sinopec as saying. The JV — dubbed Fujian Sinopec Aramco Refining and Petrochemical Co — will cover port operation and crude oil transportation at their planned joint refinery and petrochemical complex, which is now under construction in China’s Gulei Port Economic Development Zone in the Fujian province.
Who owns what? The agreement was inked between Aramco’s Asia arm Aramco Asia Singapore and Fujian Petroleum Chemical Industry Co — a JV between Sinopec and the Fujian government. Aramco Asia Singapore and Sinopec will each supply 25% of the JV’s registered capital, while Fujian Petroleum Chemical Industry will contribute the remaining CNY 14.4 bn in cash.
REMEMBER- Aramco and Sinopec kicked off construction work at a refinery and petrochemical complex in southeast China’s Fujian province back in November 2024, with operations expected to begin in 2030.
Project profile: The new refining hub is situated in Zhangzhou city’s Gulei industrial park and includes a 320k bbl / d refinery, ethylene and paraxylene plants, as well as a 300k-ton crude oil terminal. Once operational, the facility is expected to supply some 5 mn tons of petrochemical feedstocks a year. The initiative is separate from another USD 6.4 bn Sabic refining complex that is also situated in Gulei industrial park, Reuters explained.
Aramco is doubling down on downstream assets in China: The state-owned oil giant is “recalibrating” its petrochemicals portfolio and shifting its focus towards Asia, with the firm pursuing several downstream oil investments in China to lock in demand for Saudi crude in the long run. Aramco also sees demand for plastics and other petroleum derivatives growing in Asia and is angling for a larger market share in those markets. The Saudi major has set its sights on supplying 1 mn bbl / d of crude to China to support petrochemical production investments.
