Saudi Aramco, Sinopec Break Ground On Refining, Petrochemical Facility In Southeast China
Saudi Aramco and China Petroleum and Chemical Corporation (Sinopec) have started building a combined refinery and petrochemical plant in Fujian province, southeast China, according to a statement on Monday.
Sinopec-Aramco Petrochemical Complex
A new petrochemical complex is being built, which will include:
- A refinery capable of processing 16 million metric tons (320,000 barrels) of oil per day.
- An ethylene unit producing 1.5 million metric tons per year.
- A paraxylene plant producing 2 million metric tons per year.
- A crude oil terminal with a capacity of 300,000 metric tons.
Saudi Aramco announced this project but didn’t reveal how much it will cost. The complex is expected to start operations in 2030.
The project is a joint venture (JV) between Sinopec and Saudi Aramco, called Fujian Petrochemical. The Fujian provincial government, through Fujian Petrochemical Industrial Group Company, will own 50% of the venture, while Sinopec and Saudi Aramco will each hold a 25% share.
The two companies first agreed to build this facility two years ago, according to a Reuters report.
After the announcement, Sinopec’s shares increased by 0.6%, closing at ¥6.36 (4 cents) on November 18, 2024.
Big number
Once it’s running, the Sinopec-Aramco refining and petrochemical plant is expected to make five million tons of petrochemical feedstocks each year, according to the company.
Crucial quote
“We will supply over one million barrels of crude oil every day to these advanced chemical plants in China, strengthening Aramco’s role as a reliable, long-term partner in China’s growth,” said Mohammed Y. Al Qahtani, President of Aramco Downstream.
“This also supports our plan to turn more of our crude oil into chemicals, helping to meet the growing global demand for petrochemicals,” he added.
Financial Performance
Saudi Aramco’s net income for the third quarter dropped by 15.4% compared to last year, falling to $27.6 billion. This was mainly due to lower oil prices and less oil being produced. The company’s earnings before interest and taxes (EBIT) also dropped by 17.4%, from $62.3 billion to $51.5 billion.
In contrast, Sinopec’s net profit grew by 2.6% to $5.2 billion (¥37.1 billion) in the first half of 2024, thanks to higher oil prices, despite lower sales. The company’s sales decreased by 1.1%, reaching $221.8 billion from January to June, according to a report from the Shanghai Stock Exchange.
Published: 19th November 2024
Also Read:
Elie Saab Marks 45 Years of Fashion Design in Riyadh
EFG Hermes issues $13.5M securitized bonds for Valu
SAAS Properties completed 7 projects, aiming for growth under D33
