Saudi Arabia: Chemchina and Saudi Aramco Sign Agreement Long-Term Supply of Saudi Oil for Chemchina
Saudi Aramco and China National Chemical Corporation (Chemchina) signed a memorandum of understanding that encourages all parties to seek investment opportunities in the energy and chemical sectors in the Saudi Kingdom.
Riad/Saudi Arabia — The agreement sets the stage to explore investment opportunities in the Kingdom of Saudi Arabia in renewable energy including the development of manufacturing facilities for the organo-silicone and solar energy photovoltaic (PV) value chain, specialty chemicals and automotive tires using local raw materials. The signing parties also call for the potential development of other industrial sectors including performance fibers for aerospace and high tech applications, industrial non-tire rubber, animal feed additives and engineering plastics.
It also calls for assessment of the feasibility of using Saudi Aramco’s crude oil grades as feedstock for Chemchina’s refineries through a long-term Crude Oil Sales Agreement (COSA) that will commence 2017. The companies will assess cooperation in exchanging oil products from Chemchina’s refineries and subsidiaries with Saudi Aramco and its subsidiaries.