Aramco Trading Company signed on Wednesday a non-binding agreement with Egypt’s Red Sea National Petrochemicals Company for a long-term crude oil supply for its planned refinery complex with a provision for offtake of refined and petrochemical products.
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 Ain Sokhna.
The agreement will pave the way for Aramco Trading to buy products from Red Sea, which include polymers, olefins, and liquid refined and petrochemical products.
The Red Sea National Petrochemicals Company (Red Sea Co.) 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 is expected to have a liquid-to-chemical conversion rate of around 60-70%, which is the main pillar in Egypt’s Ministry of Petroleum and Mineral Resource national transformation program.