Chinese energy giant Sinopec has entered into a joint venture agreement with a subsidiary of Saudi Aramco to manage port operations, transport crude oil, and provide a range of sector-related services.
The newly created company, Fujian Sinopec Aramco Refining and Petrochemical Co., is valued at around $3.95 billion and will operate in the Gulei Port Economic Development Zone in Zhangzhou, Fujian province, China.
This latest development further deepens the strategic partnership between Sinopec and Aramco, particularly in the petrochemical industry. Earlier in April, the two firms agreed to expand their operations at the Yasref refinery in Yanbu, a flagship joint venture in Saudi Arabia.
These moves align with Aramco’s broader strategy to enhance its presence in the global petrochemical sector through international collaborations.
In addition to the joint venture, Aramco has signed a framework agreement with Sinopec and Yasref to advance engineering studies for a new, integrated petrochemical complex at the Yasref site.
The project will feature a state-of-the-art petrochemical unit, including a large steam cracker capable of producing 1.8 million tonnes per year, and an aromatics complex with a 1.5 million tonne annual capacity. These new facilities will seamlessly integrate into the Yasref infrastructure to maximise operational efficiency.
These agreements represent a significant milestone in Aramco’s efforts to diversify and expand its downstream operations worldwide, while also strengthening Sinopec’s international energy partnerships.
The construction of the Gulei complex, which began in November last year, is part of Aramco’s plan to supply China with one million barrels of crude oil per day for oil-to-chemicals projects, further cementing the companies’ commitment to global energy cooperation.
