RIYADH, SAUDI ARABIA (AP) – Saudi Arabia’s state-owned oil giant Aramco will invest billions of dollars in China’s downstream petrochemicals industry, including the construction of a new refinery, the company said in deals announced on Sunday and yesterday.
The announcements came as the company posted a record profit of more than USD160 billion in 2022 and as Saudi Arabia, a longtime United States (US) ally, has developed closer ties with Beijing in recent years.
Aramco will acquire a 10 per cent interest in China’s Rongsheng Petrochemical Co Ltd, a purchase valued at USD3.6 billion. Under a long-term sales agreement, Aramco will supply 480,000 barrels per day to Rongsheng affiliate Zhejiang Pettroleum and Chemical Co Ltd, which owns and operates China’s largest refining and chemicals complex.
“This announcement demonstrates Aramco’s long-term commitment to China and belief in the fundamentals of the Chinese petrochemicals sector,” Aramco executive vice president Mohammed Al Qahtani said in a statement. “It also promises to secure a reliable supply of essential crude to one of China’s most important refiners.”
On Sunday, Aramco announced plans to construct a new refinery and petrochemical complex in northeastern China through a joint venture. Aramco, which holds a 30 per cent stake in the Huajin Aramco Petrochemical Company, would supply 210,000 barrels per day of crude to the complex.