Saudi Aramco eyes strengthening cooperation with Chinese partners
Energy company wants to become a partner in the Asian giant’s economic journey, says CEO
Energy giant Saudi
Aramco is eager to enhance cooperation with China, particularly in areas such as carbon capture techniques, stated the company’s CEO.
Speaking at a development forum held in Beijing, Amin Nasser expressed the aim to become a partner in the Asian giant’s economic journey.
According to a press statement, the company has the potential to partner with Chinese entities in areas besides energy supply, including material development and the chemicals sector.
Nasser said: “We are not mere investors, and China is not just a market to us. We want to be a partner of first resort in China’s economic development journey, as new opportunities clearly come into focus.”
He further emphasized that Saudi Aramco is proud to be China’s most reliable energy supplier.
The CEO added that the firm is committed to realizing its goal of achieving energy security in the Asian country in the long term, which will drive further China’s growth and development. “China has a vitally important place in our global investment strategy. In fact, Aramco was among the leading direct investors in China last year,” he added. Nasser emphasized Saudi Aramco’s significant presence in the chemicals sector, citing its majority shares in Saudi Basic Industries Corp. He highlighted plans to increase liquid-to-chemicals production to 4 million barrels by 2030.
“So I believe both our strategic goals in chemicals are well-aligned. And we are already seeing Aramco action on the ground. There were two agreements last year for multibillion-dollar liquids to chemicals investments in China,” said Nasser. He added: “One is our acquisition of an interest in the Rongsheng
Petrochemicals Co. in Zhejiang Province for $3.4 billion. The other is our partnership in Liaoning Province at a cost of approximately $12 billion.”
Nasser highlighted strong opportunities for cooperation between Saudi Aramco and Chinese partners in sectors aimed at reducing emissions.
“China has distinct strengths in renewables and critical materials, while Aramco and Saudi Arabia have a clear interest in solar, wind, hydrogen, and electro fuels. These areas have great long-term potential, and combining our strengths could match our ambitions,” he noted.
The Asian country is keen on opening its doors to foreign investors as indicated by its Premier Li
Qiang told an audience of global CEOs and Chinese policymakers. China will carefully study issues of market access and cross-border data flows and will soon issue new regulations in these areas, he said. “We cordially welcome companies from all countries to invest in China and deepen their foothold in China,” Li said.
China is also pushing to develop emerging industries such as biological manufacturing and will step up development of artificial intelligence and the data economy, Li told the China Development Forum in Beijing.
Beijing on Tuesday eased some rules on foreign investment, after investment inflows shrank nearly 20 percent in the JanuaryFebruary period. China’s cyberspace regulator on Friday relaxed some security rules on data exports that had worried foreign firms in China.
China’s inflation rate and the central government’s debt burden are relatively low, leaving room for further macro policy steps, Li told the two-day forum. He pointed to measures China rolled out last year to defuse property and debt risks, which he said have been effective. Organized annually by Beijing since 2000, the high-level forum is an opportunity for global CEOs and Chinese policymakers to discuss foreign investment. Regular attendees include Apple CEO Tim Cook and Bridgewater Associates founder Ray Dalio.