Aramco Boosts Oil Ties with China as World Frets Over Supply - Bloomberg

Aramco Boosts Oil Ties with China as World Frets Over Supply - Bloomberg

Saudi Arabia is strengthening energy ties with China, as the oil producer Aramco agreed to build a multi-billion dollar refining and chemicals project that will tap into the Asian country’s future demand.

Globally, consumers are screaming for fuels as consumption recovers after the coronavirus pandemic, and refiners are delaying maintenance to benefit from high margins. Prices spiked to more than $130 a barrel after Russia’s invasion of Ukraine triggered concern that supply could be impacted. There are signs that Russian oil is being shunned, with a number of tenders struggling to attract buyers. So far, that hasn’t dented demand.

The surge in prices is helping oil producers revive some investment plans put on ice during the pandemic. The Saudis, at the heart of global supply as the world’s largest exporter, are spending billions to raise crude production capacity and pump more natural gas.

Saudi Aramco said it had taken the final investment decision to partner in a refining complex in Panjin, North China after it revived the plan. The state oil company had shelved the project and dropped others, as plunging prices during the pandemic disruped spending plans.