Saudi Aramco to sign China refinery deals as crown prince visits

Published: February 21, 2019 14:21:12 | Updated: February 21, 2019 16:45:55

Saudi Aramco plans to sign preliminary deals to invest in two oil refining and petrochemical complexes in China during the Saudi Arabian crown prince’s visit this week, sources familiar with the plans said, as Beijing seeks expanded ties with Riyadh, according to Reuters.

The Saudi delegation, including top executives from Aramco, arrived in Beijing on Thursday for a two-day visit, part of the crown prince’s Asia tour, during which the kingdom has pledged $20 billion of investment in Pakistan and sought additional investment in India’s refining industry.

Mohammed bin Salman will meet Chinese President Xi Jinping, who has made stepping up China’s presence in the Middle East a key foreign policy objective, despite its traditional low-key role there. China has given few details about the visit.

Saudi Aramco, the world’s top oil exporter, will sign a memorandum of understanding (MoU) to build a refinery and petrochemical project in the northeastern Chinese province of Liaoning in a joint venture with China’s defence conglomerate Norinco, said three sources with knowledge of the matter.

Aramco is also expected to formalise an earlier plan to take a minority stake in Zhejiang Petrochemical, controlled by private Chinese chemical group Zhejiang Rongsheng Holding Group, said two sources with knowledge of this particular deal.

Zhejiang Petrochemical is building a refinery and petrochemical complex in the eastern Chinese province of Zhejiang.


Share if you like