Amin Nasser, President and CEO of Aramco, recently delivered a keynote speech at the China Development Forum in Beijing, emphasizing the potential for enhanced collaboration between Aramco and its Chinese partners. Nasser underscored the significance of fostering trusted partnerships and identified key areas for increased cooperation. This includes emissions reduction technologies, materials development and the chemicals sector.
Nasser highlighted both Aramco and China’s strategic goals, emphasizing that they align particularly in the chemicals sector. Hence, Aramco signed two liquids-to-chemicals investment agreements in China last year, totaling over $15.4 billion. These agreements include the acquisition of a $3.4 billion stake in Rongsheng Petrochemicals Company in Zhejiang Province, and a partnership in Liaoning Province with a total investment of approximately $12 billion.
Fostering broader economic globalization
Nasser highlighted the potential for stronger collaboration between Aramco and China to foster broader economic globalization. He emphasized the importance of building trusted partnerships and acknowledged China’s remarkable resilience and economic growth in recent decades.
As one of China’s most reliable energy suppliers, Aramco plays a strategic role in the country’s economic development. “Aramco’s commitment to China’s long-term energy security, which will drive this great nation’s further growth and development, is set in stone,” stated Nasser. With China’s growing emphasis on high-quality development, greater investment and cooperation opportunities are emerging.
Global investment strategy
With the growing relations between Saudi Arabia and China, the Kingdom places great importance on China in its global investment strategy. This has led to multiple investments in the country last year. “We want to be a partner of first resort in China’s economic development journey, as new opportunities come into focus,” Nasser added.
China’s market strength accounts for 40 percent of global chemicals sales. Moreover, Aramco aims to grow in the sector as it holds a majority stake in SABIC, a world-leading chemicals player. Therefore, collaboration with China is crucial to Aramco’s ambitious goal of increasing liquids-to-chemicals throughput to 4 million barrels per day by 2030.
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Lower carbon energy
Highlighting lower carbon energy as a global priority, Nasser pointed out the alignment between China and Saudi Arabia’s climate ambitions. He emphasized the potential for collaboration in renewable energy initiatives, including solar, wind, hydrogen, and electrofuels, to effectively match their ambitions.
Nasser also discussed opportunities for collaboration in digital and Fourth Industrial Revolution technologies, emphasizing Aramco’s venture capital arm’s focus on innovation and sustainability. With its recent funding increase to $7.5 billion, Aramco is well-positioned for larger investments in technology. Finally, Nasser highlighted attractive opportunities for China and Aramco to partner in driving innovation and sustainability initiatives forward.
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