The Clap
Saudi Aramco (2222) signed a memorandum of understanding (MoU) with Shandong Energy to supply crude oil and purchase chemical products to help the company build a strong refining and petrochemical sector in Shandong, China.
What
The MoU will see the companies cooperate through hydrogen-related technologies, renewable energy sources, carbon capture, and storage.
So What
This agreement strengthens Aramco’s efforts to support the demand for energy, petrochemicals, and non-metallic materials in China in light of its expanding capacity to convert liquids into chemicals to reach 4 million barrels per day by 2030.
Now What
The Saudi-Chinese summit pushed for qualitative mutual investments between the two countries and the development of promising projects in converting oil into petrochemicals.
In addition, 12 agreements and MoUs were signed in several fields, attracting Chinese companies to open regional headquarters in Saudi Arabia.
