This picture shows Aramco tower (C) at the King Abdullah Financial District (KAFD) in Riyadh on April 16, 2023. - Saudi Arabia has put a second four-percent chunk of shares of the Aramco energy giant, worth tens of billions of dollars, under the control of the country's sovereign wealth fund, state media said. FAYEZ NURELDINE/AFP via Getty Images
Saudi Aramco is set to strengthen its strategic partnership with China through investments in petrochemicals and low-carbon technologies, evolving beyond crude oil sales.
In the announcement, SCMP reported that Aramco's downstream president, Mohammed Al Qahtani, cited the company's commitment to supporting China's long-term energy security while also pursuing new growth opportunities in the global market.
Aramco plans to invest heavily in integrated downstream projects across China, focusing on oil supply, refining, chemicals, and lubricants. In return, possibly transforming Aramco into a leading player in the liquids-to-chemicals sector.
At the same time, this also aligns with China's goal of reducing its reliance on fossil fuels and increasing its focus on clean energy and petrochemical materials necessary for technologies such as solar panels and batteries.
In fact, as early as January of this year, Reuters noted that China had already hit its goal to be a top importer of fossil fuels.
Beyond that, it's also going to be part of China's ambitious goals under the Paris Agreement, which aim to reach peak carbon emissions by 2030 and achieve net-zero emissions by 2060.
Likewise, Aramco is also looking into ways to work together on advanced technology to reduce emissions. This includes projects focused on heavy transport, new types of energy, and capturing and storing carbon, all of which are important for helping China reach its carbon neutrality targets.
After downstream projects, Aramco will also invest in research through Nexcel, an innovation center created with the China Building Materials Academy. This center develops nonmetallic materials for construction to lower carbon emissions, which have already been used in infrastructure projects.
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