China Cozies Up To American Ally With Huge New Oil Deals

  • Post category:News / US News
China Cozies Up To American Ally With Huge New Oil Deals


Get Your Patriot911 Newsletter In Your Email Inbox

Saudi Arabian energy giant Aramco, the largest oil producer in the world, announced a multibillion dollar investment in a Chinese oil firm Monday morning, continuing the oil giant’s expansion into the region.

The $3.6 billion deal would grant Aramco a 10% stake in Rongsheng Petrochemical, and send roughly 480,000 barrels of Saudi oil to a Rongsheng refinery in China per day, via Rongsheng affiliate Zhejiang Petroleum and Chemical Co., Aramco announced in a press release. The oil giant also announced plans Sunday to begin construction of an integrated refinery and petrochemical plant in the Liaoning Province of northeast China, at an estimated cost of $12.2 billion, according to Reuters.

“This announcement demonstrates Aramco’s long-term commitment to China and belief in the fundamentals of the Chinese petrochemicals sector. It is an important acquisition for Aramco in a key market, supporting our growth ambitions and advancing our liquids to chemicals strategy,” Mohammed Y. Al Qahtani, a high-ranking Aramco official, said in a Monday press release, referring to the Rongsheng deal. “It also promises to secure a reliable supply of essential crude to one of China’s most important refiners.”

The moves are the latest in a series of Aramco investments in China, Reuters reported. In late 2022, the company agreed to consider a crude supply deal with state-owned Shandong Energy and on Sunday announced an agreement with the nation’s Guangdong province to explore cooperation in energy, finance and other sectors.

“This strategic co-operation will take our long-term friendship and mutual trust to a new level, and paves the way for a bright future for the high-quality development of the world’s petrochemicals industry,” Chairman Li Shuirong of Rongsheng said in the same Monday press release. “I believe that Aramco’s involvement will greatly help Rongsheng implement its petrochemical growth strategy.”

Saudi Arabia was China’s largest supplier of oil in 2022, but a recent surge of Russian oil led the Middle Eastern kingdom to be unseated as China’s top oil supplier in February, according to Bloomberg. China and India have both seen their imports of Russian oil skyrocket, as the country seeks to offload oil at a discounted rate to attract buyers amid Western sanctions.

Aramco did not immediately respond to a Daily Caller News Foundation request for comment.

All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.

Is Biden the ultimate embarrassment to our country?

This poll gives you free access to your Patriot911 Newsletter in your email inbox. Email field is required. Unsubscribe at any time.

All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.

Newswire
Share to break through the censorship!

JOIN US @NewRightNetwork on our Telegram, Twitter, Facebook Page and Groups, and other social media for instant news updates!


New Right Network depends on your support as a patriot-ran American news network. Donate now