Saudi Aramco to invest billions in Chinese petrochemicals

RIYADH, Saudi Arabia –

Saudi Arabia’s state-owned oil big Aramco will make investments billions of {dollars} in China’s downstream petrochemicals business, together with the development of a brand new refinery, the corporate mentioned in offers introduced Sunday and Monday.

The bulletins got here as the corporate posted a file revenue of greater than US$160 billion in 2022 and as Saudi Arabia, a longtime U.S. ally, has developed nearer ties with Beijing lately.

Aramco will purchase a ten% curiosity in China’s Rongsheng Petrochemical Co. Ltd,, a purchase order valued at $3.6 billion. Under a long-term gross sales settlement, Aramco will provide 480,000 barrels per day to Rongsheng affiliate Zhejiang Pettroleum and Chemical Co. Ltd., which owns and operates China’s largest refining and chemical compounds advanced.

“This announcement demonstrates Aramco’s long-term commitment to China and belief in the fundamentals of the Chinese petrochemicals sector,” Aramco government vp Mohammed Al Qahtani mentioned in an announcement. “It also promises to secure a reliable supply of essential crude to one of China’s most important refiners.”

On Sunday, Aramco introduced plans to assemble a brand new refinery and petrochemical advanced in northeastern China by means of a three way partnership. Aramco, which holds a 30% stake within the Huajin Aramco Petrochemical Company, would provide 210,000 barrels per day of crude to the advanced.

Saudi Arabia has cultivated nearer ties with each Russia and China lately. Earlier this month, Saudi Arabia and Iran agreed to revive diplomatic ties for the primary time since 2016 in a deal brokered by Beijing whilst Riyadh introduced a large contract to purchase industrial planes from U.S. producer Boeing.