• 5 days Retail On Pace For Most Bankruptcies And Store Closures Ever In One Year: BDO
  • 10 minutes America Could Go Fully Electric Right Now
  • 7 days Majors Oil COs diversify into Renewables ? What synergies forget have with Solar Panels and Wind Tirbines ? None !
  • 6 mins Most ridiculous green proposal
  • 11 mins China Sets Its Sights On Global [EV, AI, CRISPR, Fusion, Navel Lint Collector] Dominance
  • 3 hours The Green Hydrogen Problem That No One Is Talking About
  • 14 hours Video Evidence that the CCP controls Joe Biden
  • 21 hours Rethinking election outcomes for oil.
  • 4 hours The City of Sturgis Update on the Motorcycle Rally held there, and the MSM's reporting hence
  • 2 days The Leslie Stahl/60 Minutes Interview with President Trump
  • 2 hours P@A will cost Texas Taxpayers $117 Billion.
  • 1 day Republicans Have Become the Party of Hate
  • 1 day Australia’s Commodities Heartland Set for Major Hydrogen Plant
  • 2 days WallStreet Journal editorial " . . Big Tech-Media are the propaganda arm of Democrat Party leading to one party autocratic rule. " This is the State of the Union.
  • 3 days Even Obama can't muster a crowd to support Biden.
  • 2 days Permian in for Prosperous and Bright Future
  • 2 days Clean Energy Is Canceling Gas Plants
  • 2 days Vote Biden for Higher Oil Prices

Saudi Aramco Boosts Oil Investment In China’s Downstream

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