Aramco Trading Company, Saudi Aramco's trading subsidiary, signed a long-term crude oil supply agreement with Egypt's Red Sea National Petrochemicals Company for its planned refinery complex, which includes the offtake of refined and petrochemical products, Aramco said in a statement on Tuesday.
Under the agreement, Aramco Trading will supply 100,000 barrels per day of Arabian Crude into its refining and petrochemical complex, which is expected to be built at the Suez Canal Economic Zone in Egypt's Red Sea town of Ain Sokhna.
The agreement will allow Aramco Trading to purchase Red Sea products such as polymers, olefins, liquid refined and petrochemical products.
The Red Sea National Petrochemicals Company was established to meet the needs of the local market for refined and petrochemical products in addition to creating export opportunities for these products.
The planned petrochemical refinery, which is the main pillar of Egypt's Ministry of Petroleum and Mineral Resources national transformation program, is expected to have a liquid-to-chemical conversion rate of around 60-70%.
“We are committed to supporting the continued development of oil and gas resources in Egypt, a country which is capable of delivering technologically advanced projects of significant scale to meet the growing energy demands of the nation and the region,” Mohammed Y. Al Qahtani, chairman of Aramco Trading Company, was quoted as saying in the statement.
By Sibel Morrow
Anadolu Agency
energy@aa.com.tr