- Saudi Aramco is investing 24.6 billion yuan ($3.6 billion) in Rongsheng Petrochemical, one of China's leading refiners, to acquire a 10% stake. This bold move bolsters Aramco's presence as the world’s biggest energy importer and doubles down on their commitment to shipping a staggering 700,000 barrels of oil a day to China for conversion into chemicals.
- Monday marked a historic moment for Aramco, as the oil giant's largest-ever foreign acquisition was sealed with Rongsheng. As part of the arrangement, Aramco has agreed to supply Rongsheng's 800,000-barrel-a-day refinery in Zhejiang with 480,000 barrels of crude oil per day for 20 years, along with an $800 million credit line.
Why it matters
With $160 billion in profits last year, Saudi company Aramco seeks to transform 4 million barrels of crude per day into petrochemicals by the end of the decade. Despite the increased uptake of electric vehicles, Aramco anticipates a growth in demand for goods such as plastics and paint, which are produced from crude-based chemicals. These deals arrive as Russia is making strides in the Chinese and Indian markets due to sanctions imposed on them by the US and Europe, recently making them China's top crude oil supplier.