China Knowledge reported that the National Development & Reform Commission, the country economic planner has approved state owned Sinopec Group plan to build a 400,000 barrel per day Yanbu refinery in Saudi Arabia, the world's top oil exporting country.

Four months ago, Sinopec and Saudi Aramco inked an initial agreement to build the USD 10 billion refinery in Saudi Arabia.

Saudi Aramco said in March that it will hold a 62.5% stake in the Red Sea Refining Co which is formed to build the Yanbu refinery while Sinopec will own the rest.

This may be Sinopec Group first refining venture outside China. Sinopec Group is the parent of Sinopec Asia largest oil refiner.

China, the world second-largest oil consumer is surpassing the US as Riyadh largest crude oil buyer with volumes set to hit an average of 1 million barrels per day this year or around 20% of China crude imports.

(Sourced from China Knowledge)