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Sinopec, Albemarle Ink Non-Binding Accord for Hydrocracking

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The subsidiaries of China Petroleum and Chemical Corporation (SNP - Free Report) or Sinopec and Albemarle Corporation (ALB - Free Report) have inked a Heads of Agreement (HOA) related to heavy feedstock hydrocracking.

Sinopec’s subsidiaries —Sinopec Catalyst Co. Ltd. (“SCC”) and Sinopec Fushun Research Institute of Petroleum and Petrochemicals ("FRIPP") — along with Albemarle's catalysts business unit are collaborating to become a major supplier of hydrocracking pre-treat and hydrocracking catalysts know-how. The cooperation will be on a global and  non-exclusive basis.  

Sinopec's subsidiaries and Albemarle will develop effective solutions for heavy feedstock hydrocracking for the global refining industry. The HOA is also likely to culminate into productive business cooperation, which will benefit numerous customers around the globe.

About Sinopec Catalyst Company

A wholly owned subsidiary of Sinopec, SCC is one of the world's leading manufacturers, suppliers and service providers catering to the oil refining and chemical catalysts. The subsidiary has industrial services of various technology resources and offers one-stop solution to different problems from the industrial facilities operation. SCC generates various catalysts including oil refining catalysts, polyolefin catalysts, catalysts for basic organic raw materials, coal chemical catalysts, environmental protection catalysts, additives and absorbents.

About Sinopec Fushun Research Institute of Petroleum and Petrochemicals

Sinopec Fushun (Dalian) Research Institute of Petroleum and Petrochemicals’ central part of operation is hydroprocessing. The unit is a research institute directly under Sinopec.

Its key areas of research comprises clean refining technologies and focuses on clean production of gasoline and diesel, efficient conversion of heavy oil as well as development of high value-added products. It also includes new energy technologies focusing on promising energy resources, biomass energy resources and the development of unconventional oil products. The insitiute also has access to utility technologies that focuses on water-related affairs, environmental protection, equipment, storage, transport, energy conservation, energy storage and intelligent power. These operations are vital to support the upgrade of oil products along with providing petrochemical and environmental protection technologies.

About Albemarle

Headquartered in Charlotte, NC, Albemarle is a global specialty chemicals company with leading position in lithium, bromine and refining catalysts.

Price Performance

In the past three months, Sinopec’s shares have gained 3.8% against the industry’s 14.7% loss.

Zacks Rank & Key Picks

Sinopec currently carries a Zacks Rank #3 (Hold).

A few better-ranked players in the same sector are Occidental Petroleum Corporation (OXY - Free Report) and CVR Refining, LP . These stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Occidental Petroleum is an international oil and gas exploration and production company. It pulled off an average positive earnings surprise of 30.2% in the last four quarters.

Sugar Land, TX-based CVR Refining is an independent downstream energy partnership with refining and associated logistics properties in the Midcontinent United States. The company delivered an average positive earnings surprise of 7.05% in the last four quarters.

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