Aramco to invest billion in Chinese petrochemicals

Saudi oil giant Aramco announced on Sunday and Monday deals to invest billions of dollars in China’s downstream petrochemicals industry.

Saudi Arabia’s state-owned Aramco announced on Sunday plans to construct a new refinery and petrochemical complex in north-eastern China through a joint venture.

Aramco will also acquire a 10 percent interest in China’s Rongsheng Petrochemical Co. Ltd for $3.6 billion. The oil gaint will supply 480,000 barrels per day to Zhejiang Petroleum and Chemical Co. Ltd., an affiliate of Rongsheng.

It follows a preliminary agreement Aramco reached with the Zhejiang provincial government in 2018 for a 9 percent stake in Zhejiang Petroleum and Chemical Co..

Aramco executive vice president Mohammed Al Qahtani commented on the deal stating it “promises to secure a reliable supply of essential crude to one of China’s most important refiners.”