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Saudi Aramco – Sinopec sign agreement for JV Yanbu 400MBD refinery

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This topic contains 3 replies, has 1 voice, and was last updated by  Charles Randall 10 years, 10 months ago.

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  • #1990

    basil parmesan

    Aramco, Sinopec set to sign Saudi refinery deal January 09, 2012

    FILE- A worker performs a routine check on the valves at a natural gas appraisal well of Sinopec in Langzhong county. (SHALEGAS-USA/CHINA REUTERS/Stringer)

    (The Daily Star :: Lebanon News ::

    KHOBAR, Saudi Arabia: State oil giant Saudi Aramco will sign a final deal next week to build a new 400,000 barrels per day (bpd) oil refinery in Yanbu with Chinas Sinopec Group, the company said Sunday. Aramco said the formal signing would take place on Jan. 14 in Dhahran, the site of the state companys headquarters.

    Industry sources had expected the two oil majors to finalize their 2011 initial agreement in November last year.

    Under the initial agreement, Aramco will hold a 62.5 percent stake in the joint venture formed to develop the project now rebranded as Yanbu Aramco Sinopec Refining Co (YASREF) while Sinopec will own the rest.

    For Sinopec, the venture would be the first refining project the Chinese state-run oil major, parent of top Asian refiner Sinopec Corp , builds outside China, putting it in a race against rival PetroChina which has snatched a string of refinery deals beyond Chinese borders.

    Construction of the refinery, located on the Red Sea, is now underway and was to have been carried out by U.S. oil firm ConocoPhillips and Aramco. But Conoco pulled out of the plans in April 2010 as it shifted away from the refining business tofocus on oil and gas exploration.

    Aramco has said it will push on with the project even after the withdrawal of Conoco as it is part of its drive to boost domestic refining capacity to 3.5 million bpd in 2016.

    In July 2010, Aramco awarded deals to build theplant seen complete in 2014.

    The refinery is slated to process heavy crude from Saudi Arabias Manifa oilfield, which is currently under development to reach an output of 900,000 bpd by 2014.

    Aramco has already partnered with Sinopec at the joint venture Fujian plant in southeast China.

    It is considering to build three new joint venture refineries in Asia, Aramcos largest and fastest growing oil market as part of plans to boost its global refining capacity by 50 percent to over 6 million bpd.

    A version of this article appeared in the print edition of The Daily Star on January 09, 2012, on page 4.

  • #4768

    Charles Randall

    Couple significant things on this Saudi JV expansion & coker addition besides it being first Sinopec JV outside China borders:

    This new refinery is also expected to produce anode grade green coke, only problem other calciners beign that the refinery is on the Red Sea & new Saudi anode petcoke will still be long way from China calciners and behind Mideast regional demand even in JV setup.

    The Yanbu ONLY makes Anode grade if they install Resid FCC to process all Coker feedstock….. Otherwise its fuel coke. Since Yanbu is Govt owned refinery & the Govt owns/has obligations to Saudi Aluminum smelters & Saudi calciners need for Anode grade they claim its going make. BUT – and its big one – they could not afford original design “FEED” with RFCC & cokers on this 400mbd expansion at Yanbu.

    One reasons Saudi’s canceled this and rebid projects (besides investors like COP dropping out) was to try get $US 13B cost back under $10B (started at $6 billion but increased $10, then $12 & finally $13Billion before rebid). Last cost quote I heard was $SRU 20 Billion which I think is in the $10-12 B range before this JV deal surfaced. Perhaps Sinopec is going carry 42% Capital cost thru EPC/Coker tech side to let it get thru/below what appears to be less than $10 B cost hurrdle for project.

    Still have see Government confirmation of RFCC’s and an Anodecoke production commitment. <Since Sinopec/China is going lose Kuwait green, makes sense they would help push this rock uphill>

  • #4755

    Charles Randall

    China and UAE sign energy cooperation agreement
    AFP 01/17/2012 Tue

    China’s Sinopec clinched a “strategic” energy cooperation agreement with the UAE’s state-run Abu Dhabi National Oil Company (ADNOC), the official WAM news agency reported Tuesday.
    The agreement, inked on the sidelines of an energy conference in the United Arab Emirates capital, came two days after Saudi state oil giant Aramco inked a deal with the Chinese company to build an oil refinery in the Red Sea city of Yanbu that will process some 400,000 barrels per day.
    The UAE-Chinese agreement will promote cooperation between the two nations on the production and storage of oil, and on issues pertaining to training and research, according to WAM.
    The UAE and China also signed a memorandum of understanding on energy cooperation which focuses on new and renewable energy sources and paves the way for joint projects and research in the development of clean energy technologies.
    The Saudi and UAE agreements were signed during Chinese Premier Wen Jiabao’s Gulf tour which will also take him to Qatar.
    His trip comes as the West ups the stakes in its standoff with Iran, threatening to impose sanctions on the oil exports of the Islamic republic, which provides 11 percent of China’s oil imports.
    Iran is the third largest provider of oil to China. Qatar and the UAE, although both major oil-producing states, do not yet figure among the top 10 oil exporters to Beijing.

  • #4754

    Charles Randall

    Looks like UAE were quick to follow right behind Saudi’s MOU with thier own Coop Sinopec agreemet. Could pertain to number of Refinery Coking (Jebel Ali & Fujairah, ect) and calciner (MMHC, PCIC & ect) projects in / near area as well.

    Doesnt bode will for US Coker Techn license in Mideast with Sinopec Engr /Coker Tech license company in at ground floor & US Majors like COP/ect withdrawn from lot projects.

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