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at Yanbu. TheYanbu Aramco Sinopec Refinery Company (YASREF)
marks the first major Chinese petroleum refining industry investment
in the kingdom. YASREF is scheduled to come on stream in 2014. It
will produce 90,000 b/d of gasoline, 263,000 b/d of ultra low sulphur
diesel, along with 6,300 tons/day of petroleum coke and 1,200 tons/
day of sulphur.
Saudi Aramco is also studying bids from international engineering
firms to build the 400,000 b/d Jazan refinery, which is intended as
a foundation for the Jazan Economic City in the underdeveloped
southwest of the kingdom. Jazan refinery is different than the other
two new refineries, Yanbu and Jubail. It will be a semi-conversion
refinery and will largely process Arab light and Arab medium rather
than more difficult heavy crudes.
Negotiation between Saudi Aramco and China National Petroleum
Company (CNPC) is still underway to build a new refinery in China’s
south western province of Yunnan. Saudi Aramco will supply the
refinery with the crude oil via a long term contract, while PetroChina
will distribute its refined products in the targeted market. If realized,
this will be Saudi Aramco’s second downstream project in China,
after its joint venture with Sinopec and ExxonMobil in the 240,000
b/d Fujian refinery and petrochemicals project. The project will make
Saudi Aramco the biggest foreign investor in China’s refining sector
in addition to its status as the biggest foreign supplier of crude.
SaudiAramco and Indonesia’s state-owned Pertamina Co. announced
signing a memorandum of understanding (MOU) for a 300,000 b/d
refinery and petrochemical complex at Tuban in East Java.
Tuban refinery, which will be configured partly to run on Saudi
crude, if given the permission, will sell the petroleum products not
