Saudi Aramco to prioritise China for next 50 years

Market: Crude oil
22/03/21

China's energy security will remain the highest priority for state-controlled Saudi Aramco for the next half century at least, the company's chief executive Amin Nasser said.

"Ensuring the continuing security of China's energy needs remains our highest priority — not just for the next five years but for the next 50 and beyond," Nasser said at the annual China Development Forum yesterday.

Saudi Arabia was China's leading crude supplier in 2020 with 1.7mn b/d, up by 1.6pc from a year. Saudi crude accounted for 15.7pc of China's total imports of 10.86mn b/d last year, customs data showed.

Aramco's ambitions in China go beyond shipping crude and products. The company is looking for new opportunities for further investments in "integrated downstream projects to help meet China's needs for heavy transport and chemicals, as well as lubricants and non-metallic materials", Nasser said.

Aramco has a 25pc stake in the 280,000 b/d Fujian refinery in south China through a joint venture with state-controlled Sinopec and ExxonMobil, and agreed in 2018 to buy a 9pc stake in private-sector firm Rongsheng's 800,000 b/d ZPC refinery. But other mooted downstream investments, such as a stake in state-run PetroChina's 260,000 b/d Anning refinery and a 300,000 b/d greenfield refinery and petrochemical project with state-controlled Norinco, have not materialised.

Chinese president Xi Jinping has set targets for Chinese carbon emissions to peak before 2030 and to achieve carbon neutrality by 2060.

Aramco aims to participate in every phase of China's development as the country's economy changes.

"Everything from the 14th five-year plan, dual circulation and Belt and Road to peak greenhouse gas emissions by 2030, 2035 goals, the 2nd centennial goal by 2049, and net carbon neutrality by 2060," Nasser said.

"And every step of the way we aim to be side-by-side with our Chinese partners, delivering these strategic, value-adding, parallel priorities," he added.

Aramco already has a research centre in Beijing where it is working with Chinese universities and companies to develop cleaner engine-fuel systems, catalytic crude-to-chemicals technology and studies to reduce emissions.

It now wants to intensify research collaboration, with Nasser highlighting blue hydrogen and ammonia, low-carbon products, synthetic fuels and carbon capture, utilisation and storage as essential to achieving Aramco's long-term, low-carbon ambitions.

By Adal Mirza

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