Saudi Aramco to Strengthen China Ties in Petrochemicals and Sustainability

19 Aug, 2024

Saudi Aramco to Strengthen China Ties in Petrochemicals and Sustainability

Saudi Aramco is enhancing its partnership with China, focusing on petrochemicals and low-carbon technologies. The company aims to diversify its portfolio and support China's ambitious net-zero goals. Mohammed Al Qahtani, Aramco's downstream president, highlighted the shift from traditional crude oil sales to a more integrated collaboration involving oil supply, refining, and chemicals. This strategic move is designed to build a leading integrated downstream sector in China, emphasizing high conversion of liquids into chemicals.

Aramco plans to invest heavily in China’s downstream sector, spanning oil supply, refining, and the production of lubricants. The goal is to position itself as a leader in converting liquids to chemicals and to become a reliable supplier of lower-carbon intensity oils. Aramco is also exploring joint development of greenhouse gas emission reduction technologies with Chinese partners, aligning with both companies' net-zero targets.

China remains Aramco's largest customer, purchasing approximately 90 million tons of crude oil daily. The collaboration supports China's carbon reduction targets under the Paris Agreement and complements Aramco’s own commitment to achieving net-zero emissions by 2050. Investments in innovation centers, such as Nexcel, further enhance Aramco's presence and support the development of environmentally friendly materials