Malaysian oil and gas company Petronas has formed a partnership with China Petrochemical Corporation (Sinopec) to explore opportunities for growth and innovation across the energy value chain.
This memorandum of understanding (MoU) aims to ensure a resilient and affordable energy supply in the Asia Pacific region and accelerate the transition to a low-carbon economy.
Petronas and Sinopec will focus on commodity and specialty chemicals, crude oil and liquified natural gas (LNG) trading, lubricants, and digital solutions, as well as decarbonisation efforts across various industries.
Additionally, the partnership will support decarbonisation in transportation, shipping, manufacturing, aviation, and power sectors.
The most recent relationship between Petronas and Sinopec is an extension of their existing one, which was first formed in 1997 as a result of a production-sharing agreement in South Sudan.
Since then, the collaboration expanded to include LNG and petrochemical product deliveries, supporting Sinopec's gas terminal expansion and sourcing for various industries.
Recently, Petronas subsidiary Petronas Suriname E&P announced a hydrocarbon discovery at the Fusaea-1 well in block 52 offshore Suriname.
The well, drilled to a depth of 5,227m, encountered multiple oil and gas-bearing sandstone reservoirs.
This discovery builds on previous finds at Roystonea-1 and Sloanea-1.
Earlier in May 2024, TotalEnergies and Sinopec also formed a partnership to expand their collaboration in low-carbon energies, combining their research and development expertise in areas such as biofuels and green hydrogen.
At the time, Sinopec chairman said: “Sinopec and TotalEnergies have established a strong partnership. Over the years, the two companies have carried out extensive cooperation in exploration and production, LNG, biofuels, and trading.
“With this agreement, both companies intend to strengthen the partnership by exploring more opportunities in the fields of sustainable aviation fuel, green hydrogen, CCUS, etc., to fulfil our commitment to low-carbon, green and sustainable growth of the industry.”
