Petronas and Sinopec Form Strategic Alliance to Propel Energy Innovation

June 2024

Malaysia’s state-owned oil company, Petroliam Nasional Berhad (Petronas), has entered into a strategic collaboration with China Petrochemical Corporation (Sinopec) to explore growth and innovation opportunities across the energy value chain. The companies have signed a memorandum of understanding to reiterate their commitment to ensuring a resilient and affordable energy supply, fostering economic growth and development in the Asia Pacific, and accelerating the transition to a low-carbon economy.

This collaboration will focus on sustainable growth in commodity and specialty chemicals, crude oil and liquefied natural gas (LNG) trading, lubricants, and digital solutions. It will also drive decarbonization efforts in various industries such as transportation, shipping, manufacturing, aviation, and power. Petronas, leveraging its capacity as a fully integrated energy provider, aims to ensure access to abundant and affordable energy in the region through high-quality products and solutions. Its extensive portfolio, which includes oil and gas, renewable sources, advanced products and adaptive solutions, enables the company to meet energy needs with reduced carbon emissions and competitive costs.

Petronas and Sinopec have been partners since 1997, starting with a production-sharing contract in South Sudan for exploration and production activities. Their collaboration has since expanded across the gas and downstream sectors, including the delivery of LNG and petrochemical products to support Sinopec’s gas terminal expansion plan and sourcing for various industrial applications.

(Sources: Petronas, New Straits Times)

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