• 2 minutes California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 6 minutes China and India are both needing more coal and prices are now extremely high. They need maximum fossil fuel.
  • 11 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 22 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 13 hours "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 5 hours Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
  • 2 days Did China cherry-pick the factors that affected the economic slow-down?
  • 24 mins Putin and Xi have decided not to attend the Climate Summit in Glasgow
  • 16 hours "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 20 hours Are you aware of Oil Price short videos on our energy topics?
  • 1 day Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 1 day NordStream2
  • 25 mins The Climate Scare Stories Began With Far Left Ideology Per GreenPeace Co-Founder
  • 411 days Class Act: Bet You've Never Seen A President Do This.
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Saudi Aramco Pulls The Trigger On $25 Billion Megaproject

Saudi Aramco signed on Thursday an agreement to invest in a 400,000-bpd refinery and associated petrochemical plants in eastern China as part of Saudi Arabia’s push to expand its downstream business and secure additional markets for its oil.

The Saudi state oil giant signed a memorandum of understanding with the Zhejiang province to invest in the refinery and petrochemical complex and to cooperate in crude oil supply and trading, Reuters reported, citing details released by the city of Zhoushan, where the complex will be built.

Aramco will take over the 9-percent stake of the Zhoushan government in independent refiner Zhejiang Petrochemical, which is developing the project, Abdulaziz M. Al-Judaimi, Aramco’s senior vice president of Downstream, told the Caixin Global news outlet.

According to Caixin calculations, the value of the stake would be US$308 million (2.14 billion yuan).

Total investment in the refinery-petrochemical project is expected at US$24.9 billion over the next two years, according to Caixin.

Aramco will supply 170,000 bpd of Saudi crude oil to the refinery when it starts operations, Al-Judaimi told Reuters.

Earlier this month, sources at Aramco and Zhejiang Petrochemical told Platts that the independent Chinese refiner had secured term crude supplies from the Saudi oil giant, but declined to specify volumes and loading periods.

The deal with Zhejiang was the second term deal that Aramco had signed with an independent Chinese refiner—the first was with Hengli Petrochemical’s 400,000-bpd refinery in northeast China.

Last year, Saudi Aramco started a charm offensive with local governments in China in a bid to secure participation in the downstream business in one of its largest single crude oil customers.

Related: The Implications Of A Fractured U.S., Saudi Alliance

Aramco will be heavily investing in increasing its refining capacity and chemicals business in pursuit of securing more downstream markets for its crude oil, Aramco’s Al-Judaimi said earlier this year.

Aramco, which produces around 10 million bpd of crude oil, aims to increase its refining capacity from 5 million bpd now to 8 million bpd-10 million bpd, and to double its petrochemicals production by 2030, Al-Judaimi told Reuters in an interview in June.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News