China: Oil Business Saudi Aramco Signs Contract with Zhejiang Petrochemical to Acquire Share in New Refinery
The Saudi-based company is working to achieve a better balance between its world-class upstream and its growing downstream business. The company is also entering as a joint venture partner in major refining and petrochemical projects across China and India.
Dhahran/Saudi Arabia –Saudi Aramco recently signed a MOU with Chinese Zhejiang provincial government during the 2nd International Petroleum and Natural Gas Enterprises Conference (Ipec), to acquire a share of Zhejiang Petrochemical’s new refinery project. Abdulaziz Al Judaimi, Sr. VP Downstream, said: “We are exploring opportunities for new refining and petrochemicals facilities, making further investments in China. Saudi Aramco has recently signed a crude oil supply agreement with Zhejiang Petrochemical (Rongsheng). This increase in customer base is due to our continuous focus and attention to the Chinese market. We are also a major JV partner in a growing portfolio of refining and petrochemical assets in China.”
Saudi Aramco plays an important part in China’s energy security. Since the Saudi-based company’s first crude delivery to China, Saudi Aramco has steadily increased its supply to Chinese oil companies in line with their requirements. Since 2006 to date, no one delivered more oil to China than Saudi Aramco, thus helping China meet its critical energy needs.
Saudi Aramco is working to achieve a better balance between its world-class upstream and its growing downstream. The company’s downstream strategy seeks to enhance the value of the hydrocarbon resource base by targeting increased horizontal and vertical integration across the hydrocarbon value chain. The successful execution of the downstream strategy would deliver a world leading, strategically integrated downstream network and a robust portfolio that is more resilient to market turbulence.
Major refining, marketing and petrochemical joint ventures are being created in leading consuming nations as China and India, besides Malaysia, in addition to Saudi Aramco’s existing assets in the U.S., South Korea, and Japan.