PetroChina Saudi Aramco sign MOU refinery in China

PetroChina and Saudi Aramco sign MOU for refinery in China

12:26 PM, 18th June 2011
PetroChina and Saudi Aramco sign MOU for refinery in China
Khalid A Al-Falih, President and CEO, Saudi Aramco.

Saudi Aramco, and PetroChina signed a memorandum of understanding (MOU) to build a 10-million mt/year grassroots full conversion refinery in Yunnan Province, China. For the partners the move will expand crude oil trade and strengthen co-operation on refinery and petrochemical projects.

DHAHRAN, SAUDI ARABIA/BEIJING, CHINA: Aramco Overseas Company BV, a subsidiary of Saudi Aramco and PetroChina Co Ltd, a subsidiary of CNPC, signed on March 17, 2011, a Memorandum of Understanding related to the planned development of a 10 million metric tons per annum (200,000 barrels per day) grassroots full conversion refinery in Yunnan province in China.

The proposed refinery will be designed to process 200,000 bpd of Arabian crude oil and will produce high-quality refined products, such as ultra low-sulfur gasoline and diesel that meet current and future China products specifications.

The project represents an opportunity for Saudi Aramco to partner with CNPC, a leading Chinese petroleum company, to support growing demand for high quality refined products and capture an investment opportunity in China’s promising refining industry. Additionally, it enhances a strategic partnership of close cooperation between a major producer and a major consumer of hydrocarbons while also presenting an opportunity for additional energy security and increased industrialization in the inner part of China.

“This agreement is a significant step forward in our expanding relationship with CNPC and in our global downstream strategy. We don’t consider ourselves simply sellers of oil to China, but rather strategic partners whose many relationships in that important country are founded on mutual respect, interdependence and mutual benefit,” said Khalid A Al-Falih, President and CEO, Saudi Aramco.

Saudi Aramco will supply the project company with up to 200,000 barrels per day of Arabian crude oil via a long-term contract while PetroChina will contribute its refined products retail network assets in the targeted market to the project company.

© Saudi Aramco News




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