Energy News — Saudi Aramco Intends To Acquire 10 Percent Stake In China’s Petrochemical Refinery
In a news story about global energy markets that got swept under the rug, Saudi Aramco signed a cooperation framework agreement with Jiangsu Eastern Shenghong Co., Ltd., on 27 September 2023.
According to the agreement, Saudi Aramco will supply Shenghong Petrochemical with crude oil and other feedstocks, while the two companies discuss a potentinal strategic partnership that would allow for a large expansion project at the petrochemical and refinery compex in Jiangsu.
As part of this strategic partnership, Saudi Aramco seeks to acquire a 10% stake in Shenghong Petrochemical’s integrated refinery and petrochemical complex, . Yet, the agreement stopped short of this potential expansion deal.
This didn’t deter Saudi Aramco from speaking out about the importance of China to the company’s global market strategy. Aramco Downstream President Mohammed Al Qahtani, said:
“The signing of this cooperation framework agreement is another significant milestone in Aramco’s Downstream strategy to increase conversion of Arabian crude oil to chemicals and to expand into the critically important Chinese market. We see China as an important partner not only for today but for decades to come.”
