Saudi Aramco, the oil giant, considers China a major market and a key component of its global strategy. It aims to ensure energy and chemical security by investing in several projects in China in the refining, chemicals, and marketing sectors, writes Ahmad Abdel Rahman.
Saudi Aramco President and CEO Amin Nasser said that the company continues to explore new and additional investment opportunities in China, a major market for the company and a key component of its global strategy.
During a speech he delivered at the China Development Forum in Beijing on March 23, entitled "Unleashing the Power of Development and Contributing to Stable Global Economic Growth" Nasser spoke about Saudi Aramco's investments and ongoing activities in China. Nasser said: "China is one of our main investment destinations, and our current investments are located in Fujian, Liaoning, Zhejiang, and Tianjin provinces."
He added: "I emphasise the word “current” because we continue to explore additional opportunities, including energy and chemicals, as well as technology development. China is implementing an ambitious development plan that focuses on quality and requires energy and industrial raw materials. Aramco supports China's energy and chemical security by investing in several projects in the refining, chemicals, and marketing sectors."
Regarding China's role in the global economy, Nasser said: "China is the world's largest consumer and producer of petrochemicals. China accounts for nearly half of global demand for chemicals and has become a global hub for the entire chemical industry value chain. This will be of great importance for future industries."
He added: "China occupies a key position in Saudi Aramco's global strategy. I can assure you that, as long-term investors, we remain excited about the tremendous and growing opportunities in China. In fact, we want to strengthen our existing relationship and take it to new heights."
Concerning the growing demand for oil in China, the Saudi official said: "Oil and gas remain key components of China's economic growth equation. However, over time, we expect demand for oil in China to shift from light transportation fuel to petrochemicals due to the growing need for plastics, synthetic fibers, and other advanced materials."
He continued: "A reliable supply of these materials will be essential for China's important, high-quality growth sectors. These materials are used in areas such as wind and solar energy, the automotive industry, aerospace, and construction."
In November 2024, the Saudi oil giant laid the foundation for a mega project in China, in partnership with Sinopec. Sinopec stands for China Petroleum and Chemical Corporation and is the world's largest oil refining conglomerate, state-owned enterprise, and second highest revenue company in the world behind Walmart, with investments reaching USD 10 billion.
According to a previous statement from Saudi Aramco, the project is a large petrochemical complex, a move that will bolster Aramco's ambitions to convert four million barrels of oil per day into chemicals by 2030.
Saudi Aramco has been a reliable energy supplier to China since 1991, exporting more than seven billion barrels of oil to China since then, which stands at approximately 1.5 million barrels per day. China is a key component of the Saudi oil giant's plan to expand petrochemical projects and strengthen its presence in the refining, chemicals, and marketing sectors in key, high-value markets.
In September 2024, Saudi Aramco signed agreements with Chinese partners during a high-level Chinese delegation visit to Riyadh, led by Chinese Premier Li Qiang. In March 2023, Aramco signed final agreements to acquire a 10 percent stake in Shenzhen-listed Rongsheng Petrochemical Co., Ltd. (Rongsheng) for 24.6 billion yuan (USD 3.6 billion). This deal aims to significantly expand Aramco's presence in refining, chemicals, and marketing operations in China.
In October 2024, Bloomberg reported that Saudi Aramco was pivoting its chemical projects toward Asia. Riyadh consolidated its position at the heart of the petrochemical industry four decades ago, before expanding in recent years. Today, Saudi Arabia is one of the world's largest petrochemical producers.
Photo: Saudi Aramco is exploring investments with China (by Adobe).