Aramco to Increase Oil Supplies to China in Support of Refinery and Petrochemical Expansion

Saudi Arabia: Saudi Arabian Oil Co. (Aramco) has announced plans to purchase a 10% stake in Chinese petrochemical company Rongsheng Petrochemical Co. Ltd for around $3.6 billion. This move marks an effort by Aramco to further expand its presence of Crude oil in the Chinese market.

Aramco Overseas Co. (AOC) has been entrusted with the management of a long-term sales agreement that would see Aramco supplying 480,000 b/d of Crude to Rongsheng affiliate Zhejiang Petroleum and Chemical Co. Ltd (ZPC). Rongsheng holds a majority (51%) equity interest in ZPC, which is responsible for China’s largest integrated refining and chemicals complex, boasting capacity to process 800,000 b/d of Crude and produce 4.2 million metric tons/year of Ethylene.

Saudi Arabian oil giant Aramco has announced an investment in Chinese shipbuilder Rongsheng Heavy Industries and Zhejiang Provincial Communications Investment Group (ZPC) that is set to be completed by the end of the year. This off-market sale of Rongsheng shares, led by majority shareholder Zhejiang Rongsheng Holding Group, will "anchor an important association" between the three companies. They could collaborate in the future by trading, refining, producing chemicals, and granting licenses for technology.

Huajin Aramco Petrochemical Co. HAPCO has unveiled their plans to start the building of a combined oil refinery and petrochemical facility in Northeast China by the middle of this year. This follows another announcement from the joint venture, in which Saudi Arabian oil giant Aramco holds a 30% stake. The complex will be supplied with up to 210,000 barrels of Crude oil feedstock daily from Aramco.