State oil giant Saudi Aramco signed an agreement on Thursday to take a stake in a refinery-petrochemical project in eastern China.
The memorandum of understanding between the company and Zhejiang province included plans to invest in a new refinery and co-operate in crude oil supply. storage and trading. according to details released by the Zhoushan government after a signing ceremony in the city south of Shanghai.
Last month. Saudi Aramco signed a long-term deal with the project’s operator Zhejiang Rongsheng to supply crude oil.
The oil giant had not yet finalized the size of its stake in the project and still needed to complete due diligence. Aramco’s Senior Vice President of Downstream. Abdulaziz al-Judaimi. told Reuters on the sidelines of the event.
Saudi Aramco expects to supply 170.000 barrels per day of Saudi crude to the refinery in Zhoushan when it starts operations. he said.
The first crude carrier supplying the refinery should arrive in December or January. depending on when the project starts. he added.
Zhejiang Petrochemical. 51 percent owned by textile giant Rongsheng Holding Group. has previously said it would start the 400.000-barrels-per-day project in late 2018.