Saudi Aramco, the world’s largest oil exporter, expressed optimism about China’s long-term growth potential and the opportunities from its focus on high-quality development, according to CHINADAILY.
Mohammed Y. Al Qahtani, Aramco’s downstream president, stated that the company will keep supporting China’s energy security and economic growth, aiming for more investment and cooperation opportunities.
“At Aramco, we seek to expand our integrated operations in downstream in high-growth economies like China, which, undoubtedly, holds strategic importance for the growth of Aramco’s businesses in Asia and worldwide,” he said.
“Over the years, the company has intensified its efforts in order to meet China’s energy needs. We have supplied nearly 1.8 million barrels per day of crude oil to China, in addition to new low-carbon products, chemicals and other materials.
“Aramco is one of the most prominent direct investors in China and our role goes beyond investment. We aspire to be a key partner in China’s economic development journey, leveraging new opportunities on the horizon,” he said.
An analyst stated that the multinational corporation’s ongoing growth in China challenges the “overcapacity” narrative from some Western countries. Luo Zuoxian, head of intelligence and research at the Sinopec Economics and Development Research Institute, highlighted MNCs’ expansion in China, particularly in energy, as evidence that China’s development benefits foreign companies.
MNCs in the chemicals industry such as Aramco have been continuing to prioritize downstream assets in the country, with chemical product demand on course to grow along with economic recovery, he said.
In the first quarter, over 12,000 foreign-invested companies launched operations in China, marking a 20.7% increase compared to the previous year. Their total investment reached 301.67 billion yuan ($41.8 billion), up 41.7% from the fourth quarter of 2023, as per Ministry of Commerce data.
Al Qahtani highlighted China’s importance in Aramco’s strategy to expand into high-value chemical products.
Strategic Partnerships, Ambitious Plans
Aramco’s investments in China are thriving. Last year, they acquired a 10% stake in Rongsheng Petrochemicals for $3.4 billion and hold a 30% stake in Huajin Aramco Petrochemicals Co, a refinery and petrochemical complex in Panjin, Liaoning province, valued at $11.8 billion.
China, comprising 40% of global chemical sales, attracts attention. Sabic, a major player with Aramco as a major shareholder, plans to invest $6.4 billion in the Sabic Fujian Petrochemicals Complex, marking the largest foreign investment in Fujian province.
“These strategic partnerships will significantly strengthen our presence in the downstream sector in China and support our goal of locating new avenues for growth,” said Al Qahtani.
“Collaboration with Chinese partners provides win-win opportunities for multinational corporations like Aramco.”
Saudi Arabia’s energy minister said during the Boao Forum for Asia conference in Riyadh that the country is willing to further cooperate with China to promote global energy transition.
Aramco is exploring various areas for significant investment and cooperation opportunities, such as chemicals, advanced composites, and non-metallics, amidst China’s emphasis on enhancing productive forces and promoting high-quality development, according to Al Qahtani.
“In line with Saudi Vision 2030 as well as the Belt and Road Initiative, we expect additional investments and an enhanced presence to meet the demand for refined products, chemicals and lubricants. This also includes entering into new partnerships in logistics, procurement and supply chain, among other areas of investment,” he said.
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