Sinopec to acquire 37.5% stake in Saudi refinery

China Petrochemical Corp. (Sinopec) is to acquire a 37.5% stake in the Red Sea Refining Company, a joint venture that will build the Yanbu refinery once its agreement with Saudi Arabian Oil Co. (Saudi Aramco), becomes binding. Sinopec General Manager, Su Shulin, states, “It will advance Sinopec’s overseas operations, enhance its strategic planning of refining, and further guarantee China’s energy supply security.” The Yanbu refinery will process 400,000 barrels a day of Arabian Heavy crude oil, and is expected to begin operations in 2014. The refinery will produce 90,000 barrels per day of gasoline, 263,000 barrels per day of ultra-low sulfur diesel fuel, 6,300 metric tons per day of petroleum coke and 1,200 tons per day of sulfur, and will supply these products to both the international and domestic markets. (March 18,2011)