Sinopec and Petronas sign strategic deal to explore energy value chain

Sinopec and Petronas have signed a memorandum of understanding (MoU) to strengthen strategic cooperation and explore new opportunities within the energy value chain. The signing ceremony, held in Kuala Lumpur, Malaysia, was attended by Sinopec Chairman Ma Yongsheng and Petronas President and CEO Datuk Tengku Muhammad Taufik.

The MoU aims to foster holistic growth and innovation in the energy industry by identifying joint opportunities and areas of convergence. Key areas of focus include investments in upstream refinery and chemicals, new energy sources, and carbon capture utilisation and storage (CCUS). Additionally, the agreement covers technical and engineering services, and the trading of liquefied natural gas (LNG), crude oil, refined products, specialty chemicals, and non-fuel products.

Exploring emerging technologies

Both companies will also explore technology licensing opportunities in fields such as biofuels and plastic recycling. The partnership is expected to leverage the strengths of both companies in upstream and engineering services, aiming to lead in emerging industries and promote high-quality, low-carbon development within the energy sector.

Sinopec and Petronas have a history of strong collaboration, particularly in upstream and engineering services. This new agreement is set to enhance their complementary capabilities and position them as leaders in the evolving energy landscape.

The MoU signifies a commitment to sustainable development and innovation, aligning with global trends towards cleaner and more efficient energy solutions.