SAUDI ARAMCO
Distribution hub planned in Chinese regions / Refinery partnership with CNPC
Aramco Asia, a subsidiary of Saudi Aramco (Dhahran / Saudi Arabia; www.saudiaramco.com), has agreed with Chinese Communist Party officials to build a chemicals distribution hub for products it manufactures in the Chinese provinces of Fujian and Yunnan. The latest step in the Saudi company’s plan to expand its downstream engagement in the People’s Republic is the outcome of talks between Aramco’s president and CEO, Nabil Al-Nuaim, and Pei Jinjia, secretary of the party’s China Xiamen Municipal Committee. Al-Nuaim said it aligns the "Saudi Vision 2030" diversification and job creation drive spearheaded by crown prince Mohammad Bin Salman Al Saud with China’s "Belt and Road" initiative – see Plasteurope.com of 09.11.2016.
"Xiamen is one of the prime candidates for this chemical hub as we can leverage the benefits from China’s Free Trade Zone (FTZ) initiative," Al-Nuaim said following the meeting. Aramco’s chemical sales office is based in the coastal city Xiamen in southeast Fujian. The CEO noted that it is in close proximity to FREP, the refining and petrochemicals joint venture in which the Saudis holds a 25% share.
"Considering the strong alignment between the Belt and Road initiative and Saudi Vision 2030, our two countries have made significant progress toward strategic partnerships, including the development of a special industrial park for Chinese investors in Jazan Economic City," Al-Nuaim said, adding that Xiamen can play an important part in this development, given its role in the Maritime Silk Road.
Aramco’s Xiamen office is the hub from which the company sells its offtake share of polyolefin products from FREP and thus plays an important role in its strategy to become global leader in refining and chemicals. Altogether, the Saudi producer markets around 400,000 t/y to direct customers and distributors in Fujian as well as the southern, eastern and northern regions of China.
Aramco is currently pursuing a partnership with China National Petroleum Corporation (CNPC Dushanzi, Beijing; www.cnpc.com.cn/en) to take a stake in the Anning refinery, regarded as a key project for Yunnan’s economic development. Its scope includes a 260,000 bbl per day refinery, a network of 637 retail stations and 10 terminals. Al-Nuaim said the project has "great potential" to expand his firm’s basic chemicals slate, which currently includes polypropylene, aromatics and benzene.
According to figures provided by Aramco, bilateral Saudi-Yunnan trade totalled USD 107m in 2016, which the company said highlights its already important economic relationship with Yunnan province. The planned joint venture would not only focus on the refining sector, but would involve the entire downstream value chain, from refining and petrochemicals to retail fuel stations. Expanding the petrochemical facilities at the site will support the province’s plan for industrial park development as well as integrating with Aramco’s global chemical portfolio, the Saudi chemicals and plastics producer said. Key market for the output will be Southeast Asia.
"Xiamen is one of the prime candidates for this chemical hub as we can leverage the benefits from China’s Free Trade Zone (FTZ) initiative," Al-Nuaim said following the meeting. Aramco’s chemical sales office is based in the coastal city Xiamen in southeast Fujian. The CEO noted that it is in close proximity to FREP, the refining and petrochemicals joint venture in which the Saudis holds a 25% share.
"Considering the strong alignment between the Belt and Road initiative and Saudi Vision 2030, our two countries have made significant progress toward strategic partnerships, including the development of a special industrial park for Chinese investors in Jazan Economic City," Al-Nuaim said, adding that Xiamen can play an important part in this development, given its role in the Maritime Silk Road.
Aramco’s Xiamen office is the hub from which the company sells its offtake share of polyolefin products from FREP and thus plays an important role in its strategy to become global leader in refining and chemicals. Altogether, the Saudi producer markets around 400,000 t/y to direct customers and distributors in Fujian as well as the southern, eastern and northern regions of China.
Aramco is currently pursuing a partnership with China National Petroleum Corporation (CNPC Dushanzi, Beijing; www.cnpc.com.cn/en) to take a stake in the Anning refinery, regarded as a key project for Yunnan’s economic development. Its scope includes a 260,000 bbl per day refinery, a network of 637 retail stations and 10 terminals. Al-Nuaim said the project has "great potential" to expand his firm’s basic chemicals slate, which currently includes polypropylene, aromatics and benzene.
According to figures provided by Aramco, bilateral Saudi-Yunnan trade totalled USD 107m in 2016, which the company said highlights its already important economic relationship with Yunnan province. The planned joint venture would not only focus on the refining sector, but would involve the entire downstream value chain, from refining and petrochemicals to retail fuel stations. Expanding the petrochemical facilities at the site will support the province’s plan for industrial park development as well as integrating with Aramco’s global chemical portfolio, the Saudi chemicals and plastics producer said. Key market for the output will be Southeast Asia.
20.09.2017 Plasteurope.com [237925-0]
Published on 20.09.2017