Source: Saudi Aramco
Saudi Aramco, and PetroChina (NYSE: PTR), a subsidiary of CNPC, signed 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 the People’s Republic of 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,” said Khalid A. Al-Falih, Saudi Aramco's President and Chief Executive Officer. “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. We are proud to contribute to China's steady economic growth and continued social development through our strategic long term investment and reliable supply of energy.”
"As the national oil company of the world's largest developing country, CNPC joins hands with Saudi Aramco to establish a long term, stable and reliable partnership between the two companies," Jiang Jiemin, President of CNPC said.
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.