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A quest to meet a higher chemicals demand and feedstock security are behind this new wave of crude-to-chemicals sites in China. These sites take refinery and chemical integration to new heights, with high output of chemicals as the main value generator. These projects produce large amounts of co-products, gasoline and diesel, which will exert significant influence on the fuels market. These large and competitive projects increase the threat of closures for weaker standalone refineries.

Sinopec reported a good start to 2018. Profits beat market expectations with higher oil prices driving a much improved upstream result. A robust performance in the refining and marketing segment also helped quarterly earnings reach their highest level since mid-2015. But upstream operational performance was mixed with domestic gas output notably flat. Sinopec Corp's balance sheet also continued to strengthen during the quarter. With almost no net debt the company is in a good position to refocus on investment and make strategic progress through 2018.

On April 7th 2018, Motiva Enterprises LLC (a 100% subsidiary of Saudi Aramco) announced agreements worth $8-10 billion to study a world-scale mixed-feed steam cracker and aromatics complex integrated with their existing refinery in Port Arthur, Texas. Also under study is a potential expansion of the Port Arthur refinery, which would make it one of the largest in the world. This inform details our first impressions of the announcement, with background on Motiva, Saudi Aramco, and the commodity markets they are looking at entering in the US.

Saudi Aramco has entered into an agreement with India's state-owned refiners to jointly develop a mega refinery and petrochemical complex on the west coast of India. This project is a win-win for both Saudi Aramco and India. Saudi Aramco would secure its crude disposition by supplying crude to the integrated complex. India would receive long-term crude supply security and financing for this large scale project.