Sharjah 24 – WAM: Saudi Arabian Oil Company (Aramco) and Shandong Energy Group are exploring collaboration on integrated refining and petrochemical opportunities in China.
The companies signed a memorandum of understanding (MoU) that includes a potential crude oil supply agreement and a chemicals procurement agreement, supporting Aramco’s role in building a thriving downstream industry in Shandong Province.
The signing ceremony, which was held with the participation of the Shandong Provincial People’s Government, underscored the importance of Aramco’s partnership with Chinese companies. The scope of the Memorandum of Understanding extends to cooperation between technologies related to hydrogen, renewable energy and carbon capture and storage.
Mohammed Y. Al Qahtani, Aramco Senior Vice President of Downstream, said: “Through partnerships like this one in China’s energy heartland, we are forging new growth paths in a country that is driving the increased integration of refining and petrochemical processes. I am delighted that this spirit of cooperation is extending to hydrogen, renewable energy and carbon capture and excited by the potential for further cooperation in these key areas that will shape our collective future.”
Li Wei, chairman of Shandong Energy Group, said, “Both Shandong Energy and Aramco are important players in the international energy arena. We share many common interests, complementary strategies with broad possibilities for cooperation, especially in the development of oil and gas resources and the integrated development of refining and petrochemicals along the whole industrial chain.”
The announcement bolsters Aramco’s efforts to support demand for energy, petrochemicals and nonmetals in China as the company seeks to expand its liquids-to-chemicals capacity to 4 million barrels per day by 2030.
