Aramco and Shandong Energy sign MoU for potential collaboration
The Saudi Arabian Oil Company (Saudi Aramco), Saudi Arabia’s integrated energy and chemicals company, and Shandong Energy Group, a state-owned coal-mining company headquartered in Jinan, Shandong, China, are exploring potential collaboration on integrated refining and petrochemical opportunities in China.
Saudi Aramco and Shandong Energy have signed a memorandum of understanding (MoU) which includes a potential crude oil supply agreement and chemicals products offtake agreement, supporting Aramco’s role in building a thriving downstream sector in Shandong Province.
The signing ceremony, which was conducted with the participation of Shandong Provincial People’s Government, underlined the importance of Aramco’s collaboration with Chinese companies. The scope of the MoU extends to cooperation across technologies related to hydrogen, renewables and carbon capture and storage.
The announcement strengthens Aramco’s efforts to support demand for energy, petrochemicals and non-metallics in China, as the company seeks to expand its liquids-to-chemicals capacity to up to 4 million barrels per day by 2030.
“Through collaborations such as this in China’s energy heartland, we are creating new pathways for growth in a country that is driving the increased integration of refining and petrochemical processes. I am delighted that this spirit of cooperation is being extended across hydrogen, renewables and carbon capture and excited by the potential for further cooperation in these key areas which will shape our collective future,” said Mohammed Y. Al Qahtani, Saudi Aramco’s senior vice president of Downstream..
“Both Shandong Energy and Aramco are important players in the international energy arena. We share a lot of common interests, complementary strategies with expansive scope for cooperation, especially in oil and gas resources development and integrated refining and petrochemicals development along the whole industrial chain,” said Li Wei, chairman of Shandong Energy Group.
