Saudi Aramco looks to work on low-carbon energy solutions with China in addition to its crude oil supply and petrochemicals ventures in the world’s top oil importer, the Saudi oil giant’s downstream director said on Thursday.
Aramco plans to expand its energy ties with China beyond crude supply and petrochemicals with joint work on clean energy solutions, downstream director Mohammed Y. Al Qahtani said at the SCMP China Conference via a video link on Thursday.
“We are developing innovative technologies that can reduce greenhouse gas emissions, like blue hydrogen, electro-fuels, and carbon capture and storage – all while strengthening our existing oil and gas production capacity,” South China Morning Post quoted Al Qahtani as saying.
Saudi Aramco and China Building Materials Academy launched in 2022 to launch a nonmetallic innovation center, designed to advance the use of nonmetallic materials in the building and construction sector, which could lower emissions in this industry.
“This pioneering initiative can pave the way for other collaborations in areas that further expand the horizon of our partnerships in China – including, potentially, in areas like wind and solar,” Al-Qahtani said at the conference on Thursday.
Aramco is a key crude supplier to China and has boosted its downstream presence in its most prized oil export market by signing petrochemicals deals in recent years.
Earlier this year, Aramco entered into discussions with Hengli Group Co., Ltd. regarding the potential acquisition of a 10% stake in Hengli Petrochemical Co., subject to due diligence and required regulatory clearances.
The potential deal would not be the first transaction in the petrochemicals sector for Aramco in China.
Last year, the Saudi firm completed the purchase of a 10% stake in Rongsheng Petrochemical for the equivalent of $3.4 billion. Earlier in 2023, Aramco announced two major refinery and petrochemical deals in China, which not only give the world’s largest oil firm a share of the Chinese downstream market but also an additional export outlet for 690,000 bpd of Saudi crude in China.
By Tsvetana Paraskova for Oilprice.com
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