Mohammed Al Qahtani, the Downstream President of the oil giant, stated that Saudi Aramco seeks to strengthen its downstream footprint in China, the world's largest crude oil importer.
“China is strategically important to our business growth in Asia and worldwide, and we will remain a reliable source of long-term oil supply,” Al Qahtani added.
The Saudi executive noted that China's demand for oil products has experienced a strong resurgence, reinforcing Aramco's belief that China will drive the expansion in global oil demand and is strategically significant to Saudi Arabia, the world's top crude oil exporter.
“For example, more than half of the world's oil demand growth this year could come from China alone,” Al Qahtani said, echoing views of the International Energy Agency (IEA) and other forecasters that expect Chinese demand growth to account for around 70% of global oil demand increase in 2023.
For Saudi Aramco, which is seeking to further develop its downstream operations in China and secure long-term supply agreements with the top oil importer, the long-term prospects on the Chinese market are also promising.
Saudi Aramco just last month announced the acquisition of a 10% share in a Chinese petrochemical company for the equivalent of $3.4 billion, continuing the Saudi oil giant's downstream footprint expansion in one of its key export markets. The acquisition of a 10% stake in Rongsheng Petrochemical Co Ltd. by Aramco was completed successfully.
The world's largest oil company, Saudi Aramco, completed two significant refinery and petrochemical partnerships in China earlier this year, giving it access to the country's downstream market as well as an extra export outlet for 690,000 barrels per day (bpd) of Saudi crude.