Aramco Trading, Red Sea collaborates on crude oil supply

Aramco Trading Company (ATC) signed an agreement with Egypt’s Red Sea National Petrochemicals Company for a long-term crude oil supply; the companies said late Tuesday.

Through this agreement, ATC will use the crude oil supply for its planned refinery complex.

Aramco Trading said that it will supply 100,000 barrels per day of Arabian Crude into its Refining and Petrochemical complex. The complex is to be built at the Suez Canal Economic Zone in Ain Sokhna, western shore of the Red Sea.

“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 company said in a statement. 

“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,” said Mohammed Y. Al Qahtani, ATC Chairman in a statement.

According to ATC, the petrochemical refinery will have a liquid-to-chemical conversion rate of around 60-70 percent.