• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 2 hours Shale Oil will it self destruct?
  • 8 hours NYT: Mass Immigration Roundups in U.S. to Start Sunday
  • 3 hours White House insider who predicted Iran False Flag, David Goldberg found dead in his New York apartment
  • 20 hours U.S. Administration Moves To End Asylum Protections For Central Americans
  • 12 hours South Korea imports No Oil From Iran in June - First-Half Imports Fall 37%
  • 19 hours U.S.- Taiwan: China Says Will Freeze Out U.S. Companies That Sell Arms To Taiwan
  • 5 hours Germany exits coal: A model for Asia?
  • 1 hour Migration From Eastern Europe Raises German Population To Record High
  • 7 hours Starlink Internet Courtesy of Tesla
  • 42 mins Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 2 days Oil Price Could Fall To $30 If Global Deal Not Extended
  • 2 days Rising air pollution and green house effect
  • 11 hours A Silence is heard
Gulf of Mexico Production Falls 50%

Gulf of Mexico Production Falls 50%

The supply/demand balance in oil…

Renewables On Track To Pass Nuclear Energy

Renewables On Track To Pass Nuclear Energy

Though coal is still the…

Aramco In Talks With Chinese Petrochemical Producers

Aramco

Aramco is in talks with Chinese petrochemical producers that are building new plants to supply them with crude, a company vice-president told Bloomberg. The talks are part of Saudi Arabia’s efforts to gain more exposure to refining and petrochemicals and reduce its dependence on crude oil production and sales.

Speaking at the China International Oil and Gas Trade Congress, Aramco marketing department vice-president Mushabab Al-Qahtani said, “China is one of our oldest and largest customers. In recent years, growth in China has slowed as incremental demand preferred low-sulfur crude and as Aramco is implementing OPEC cuts. However, Aramco still has ambitious plans for China.”

The new market niche was opened by new energy players in China that have the support of the government even though they are not stated-owned. Unlike the so-called teapots that focus on fuels almost exclusively, these new companies, such as Rongsheng Petrochemical Co. and Hengli Group, are investing billions in petrochemical complexes, with the first of these new facilities to come online next year.

This would be Rongsheng Petrochemical’s US$24-billion plant on Zhoushan Island, which will have an initial processing capacity of 400,000 bpd, to be increased to 800,000 bpd by 2020. Rongsheng is understandably one of the companies that Aramco is talking to about future oil supplies.

Hengli Group, another potential partner for the Saudi state oil giant, is also building a refinery with a capacity of 400,000 bpd in Dalian, northern China.

Related: U.S. Oil Rig Count Rises Amid Record Breaking Production

All major commodity traders and oil producers are watching these new players closely, just like they used to watch the teapots when they began to emerge onto the hot Chinese oil scene. The new petrochemical producers may even get to have a more dramatic effect on oil prices than teapots simply because of their access to deeper-water ports, one analyst told Bloomberg.

“The market is closely watching Rongsheng and Hengli as they’re able to accommodate larger vessels, which means it could be more viable to supply long-haul crudes in addition to regional barrels,” said Energy Aspects analyst Nevyn Nah.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play