Associate Press copy is provided via The Canadian Press
FILE – Saudi Aramco engineers escort reporters on a tour of the Hawiyah Natural Gas Liquids Recovery Plant, which is designed to process 4.0 billion standard cubic feet per day of sweet gas, a natural gas that does not contain significant amounts of hydrogen sulfide, in Hawiyah, in the Eastern Province of Saudi Arabia, on June 28, 2021. Saudi Arabia’s state-owned oil giant Aramco will invest billions of dollars in China’s downstream petrochemicals industry, including the construction of a new refinery, the company said in deals announced Sunday and Monday.(AP Photo/Amr Nabil, File)
Saudis to supply one Chinese refiner with more oil per day than Saskatchewan produces
RIYADH, Saudi Arabia (AP) — Saudi Arabia’s state-owned oil giant Aramco will invest billions of dollars in China’s downstream petrochemicals industry, including the construction of a new refinery, the company said in deals announced Sunday and Monday.
The announcements came as the company posted a record profit of more than $160 billion in 2022 and as Saudi Arabia, a longtime U.S. ally, has developed closer ties with Beijing in recent years.
Aramco will acquire a 10% interest in China’s Rongsheng Petrochemical Co. Ltd,, a purchase valued at $3.6 billion. Under a long-term sales agreement, Aramco will supply 480,000 barrels per day to Rongsheng affiliate Zhejiang Petroleum and Chemical Co. Ltd., which owns and operates China’s largest refining and chemicals complex.
“This announcement demonstrates Aramco’s long-term commitment to China and belief in the fundamentals of the Chinese petrochemicals sector,” Aramco executive vice president Mohammed Al Qahtani said in a statement. “It also promises to secure a reliable supply of essential crude to one of China’s most important refiners.”
On Sunday, Aramco announced plans to construct a new refinery and petrochemical complex in northeastern China through a joint venture. Aramco, which holds a 30% stake in the Huajin Aramco Petrochemical Company, would supply 210,000 barrels per day of crude to the complex.
Saudi Arabia has cultivated closer ties with both Russia and China in recent years. Earlier this month, Saudi Arabia and Iran agreed to restore diplomatic ties for the first time since 2016 in a deal brokered by Beijing even as Riyadh announced a massive contract to buy commercial planes from U.S. manufacturer Boeing.
The Associated Press
- 0135 SASPO-2988_Self serve_2026_YouTube0135 SASPO-2988_Self serve_2026_YouTube
- 0121 Ministry of Energy and Resources April 20260121 Ministry of Energy and Resources April 2026
- 0134 SASPO-2956_ Safety 20260134 SASPO-2956_ Safety 2026
- 0133 LC Trucking hiring Class 1A Payden0133 LC Trucking hiring Class 1A Payden
- 0132 UMWA 20260132 UMWA 2026
- 0129 Turnbull drivers operators0129 Turnbull drivers operators
- 0128 OSY Rentals updated0128 OSY Rentals updated
- 0126 Steel_Reef_Promo_0126 Steel_Reef_Promo_
- 0118 IBEW 30 sec0118 IBEW 30 sec
- 0114 Prospera Bold Vision0114 Prospera Bold Vision
- 0113 Miller Epic Cinematic Hollywood trailer0113 Miller Epic Cinematic Hollywood trailer
- 0102 Lori Carr Coal Extended0102 Lori Carr Coal Extended
- 0099 Mryglod Steel 1080p0099 Mryglod Steel 1080p
- 0095 Fast Trucking nearly 70 years good at it0095 Fast Trucking nearly 70 years good at it
- 0046 City of Estevan This is Estevan Teaser0046 City of Estevan This is Estevan Teaser
- 0077 Caprice Resources Stand Up For Free Speech0077 Caprice Resources Stand Up For Free Speech
- 0061 SIMSA 2024 For Sask Buy Sask0061 SIMSA 2024 For Sask Buy Sask
- 0051 JML Hiring Pumpjack assembly0051 JML Hiring Pumpjack assembly
- 0049 Scotsburn Dental soft guitar0049 Scotsburn Dental soft guitar
- 0032 IWS Summer hiring rock trailer music
- 0022 Grimes winter hiring
- 0018 IWS Hiring Royal Summer
- 0013 Panther Drilling PO ad 03 top drive rigs
- 0002 gilliss casing services0002 gilliss casing services
- 9002 Pipeline Online 30 sec EBEX9002 Pipeline Online 30 sec EBEX
- 9001