Saudi Aramco signs MoU with Shandong Energy on downstream projects in China

Agreement signing ceremony

Saudi Arabian Oil Co. (Saudi Aramco) and Shandong Energy Group, are exploring collaboration on integrated refining and petrochemical opportunities in China.

In a statement received by Argaam, Saudi Aramco said a memorandum of understanding (MoU) was signed with Shandong Energy, which includes a potential crude oil supply agreement and chemicals products offtake agreement, supporting Aramco’s role in building a thriving downstream sector in Shandong Province.

The scope of the MoU extends to cooperation across technologies related to hydrogen, renewables and carbon capture and storage.

The announcement strengthens Aramco’s efforts to support demand for energy, petrochemicals and non-metallics in China as the company seeks to expand its liquids to chemicals capacity to up to 4 million barrels per day by 2030.

“Through collaborations such as this in China’s energy heartland, we are creating new pathways for growth in a country that is driving the increased integration of refining and petrochemical processes,” said Mohammed Al Qahtani, Aramco Senior Vice President of Downstream.

Cooperation is extended across hydrogen, renewables and carbon capture and excited by the potential for further cooperation in these key areas which will shape our collective future.”