• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 8 hours Iran Vows Major War Even If US Conducts "Limited Strikes"
  • 6 hours Europe: The Cracks Are Beginning To Show
  • 7 hours Memorize date 05/15/2018 cause Huawei ban is the most important single event in world history after 9/11/2001.
  • 5 hours When Trying To Be Objective About Ethanol, Don't Include Big Oil Lies To Balance The Argument
  • 3 hours Hong Kong protesters appeal to Trump for support.
  • 2 hours Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 3 hours Ban Fracking? What in the World Are Democrats Thinking?
  • 12 hours Shale profitability
  • 7 hours LA Times: Vote Trump out in 2020 to Prevent Climate Apocalypse
  • 29 mins Millennials: A boil on the butt of the work ethic
  • 18 hours One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
  • 6 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 3 hours Let's shut down dissent like The Conversation in Australia
  • 1 day A little something for all you Offshore swabbies
  • 16 hours Yawn... Parliament Poised to Force Brexit Delay Until Jan. 31

Saudi Aramco Boosts Oil Investment In China’s Downstream

Refinery

Saudi Aramco signed on Thursday an agreement with the Zhejiang Free Trade Zone in China to facilitate the acquisition of 9 percent in a local refinery and further expand its downstream presence in the world’s largest oil importer.  

The memorandum of understanding (MoU) also includes a long-term crude oil supply agreement and gives Aramco the opportunity to use Zhejiang Petrochemical’s crude oil storage facility to serve Aramco’s customers in Asia.

“These activities reflect the Company’s strategy to expand its presence in the Chinese energy sector,” the Saudi oil giant said in a statement.  

Aramco and the Zhejiang Free Trade Zone will also explore potential opportunities to invest in other parts of the value chain, including refining and petrochemical production, storage and trade of crude oil and natural gas, retail, and oil products distribution within the Zhejiang Free Trade Zone.

Earlier this year, Saudi Aramco—which is increasingly looking to lock in future oil demand in Asia’s downstream markets—signed an agreement to buy 9 percent in Zhejiang Petrochemical’s 800,000-bpd integrated refinery and petrochemical complex.

Keeping its crude oil exports subdued in hopes of erasing the glut and propping up oil prices, Saudi Arabia has dramatically reshuffled the priority destinations of its exports, boosting sales in the world’s top oil importer—China—and slashing shipments to the United States.  

While Saudi Arabia currently slashes exports to the United States, it is looking East to build a long-term relationship on the prized Asian oil market and to lock in future oil demand in the region expected to show the only solid growth in demand in the coming years and decades.

Earlier this year, Aramco signed a joint venture deal for a US$10-billion fully integrated refining and petrochemical complex in China, which will be predominantly supplied with oil delivered by Saudi Arabia. That’s just one of the deals that Aramco has recently signed in China and India to hold stakes in the downstream sector in Asia bound by long-term crude supply commitments.

By Tsvetana Paraskova 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