Saudi Aramco aims to acquire a 9% stake in Zhejiang Petrochemical’s 800,000 barrels per day integrated refinery and petrochemical complex.
This is part of three MoU’s it has signed aimed at expanding its downstream presence in the Zhejiang province, one of the most developed regions in China.
The first agreement was signed with the Zhoushan government to acquire its 9% stake in the project. The second agreement was signed with Rongsheng Petrochemical, Juhua Group, and Tongkun Group, who are the other shareholders of Zhejiang Petrochemical.
Saudi Aracmo’s involvement in the project will come with a long-term crude supply agreement and the ability to utilise Zhejiang Petrochemical’s large crude oil storage facility to serve its customers in the Asian region.
Saudi Aramco CEO Amin Nasser says: The agreements demonstrate our commitment to the Chinese market and help enhance the strategic integration of our downstream network in Asia. They will further strengthen our relationship with China and the Zhejiang province, setting the stage for more cooperation in the future.’
Phase I of the project will include a newly built 400,000 barrels per day refinery with a 1.4 mmtpa ethylene cracker units, and a 5.2 mmtpa aromatics unit. Phase II will see a 400,000 barrels per day refinery expansion, which will include deeper chemical integration than Phase I.