saudi aramco rongsheng manufacturer

Saudi Aramco today signed three Memoranda of Understanding (MoUs) aimed at expanding its downstream presence in the Zhejiang province, one of the most developed regions in China. The company aims to acquire a 9% stake in Zhejiang Petrochemical’s 800,000 barrels per day integrated refinery and petrochemical complex, located in the city of Zhoushan.

The first agreement was signed with the Zhoushan government to acquire its 9% stake in the project. The second agreement was signed with Rongsheng Petrochemical, Juhua Group, and Tongkun Group, who are the other shareholders of Zhejiang Petrochemical. Saudi Aramco’s involvement in the project will come with a long-term crude supply agreement and the ability to utilize Zhejiang Petrochemical’s large crude oil storage facility to serve its customers in the Asian region.

Saudi Aramco CEO, Amin Nasser said: “The agreements demonstrate our commitment to the Chinese market and help enhance the strategic integration of our downstream network in Asia. They will further strengthen our relationship with China and the Zhejiang province, setting the stage for more cooperation in the future.”

1 Min ReadFILE PHOTO: The logo of Saudi Aramco is seen at Aramco headquarters in Dhahran, Saudi Arabia May 23, 2018. REUTERS/Ahmed Jadallah/File Photo

SINGAPORE (Reuters) - Saudi Aramco has signed a long-term deal with Zhejiang Rongsheng to supply crude oil to the Chinese company’s new refinery in eastern China, a source with knowledge of the matter said on Wednesday.

Rongsheng International Trading Co, the trading arm of Chinese conglomerate Zhejiang Rongsheng Holding Group [ZJRSH.UL], has already bought spot Omani crude ahead of the new refinery’s start-up.

Zhejiang Petrochemical, 51 percent owned by textile giant Rongsheng Holding Group, was in August awarded a quota to import 5 million tonnes of crude oil this year. The company plans to start up its 400,000-barrels-per-day refinery-petrochemical project in eastern China in late 2018.

2 Min ReadFILE PHOTO: Workers are seen at the damaged Saudi Aramco oil facility in Abqaiq, Saudi Arabia, September 20, 2019. REUTERS/Stephen Kalin/File Photo

SINGAPORE (Reuters) - Saudi crude oil supplies for China’s privately-run Zhejiang Petrochemical Corp will return to normal in October after a slight disruption last month following the attacks on Saudi Aramco’s facilities, two company officials said.

“There was an adjustment in September but operations are back to normal in October,” Meng Fanqiu who heads Rongsheng International Trading Co in Singapore told Reuters. The trading unit procures crude for the refinery.

Drones and missiles hit Saudi Arabia’s oil facilities on Sept. 14 and reduced output at the world’s top exporter by half. The head of Saudi Aramco’s trading arm said on Monday the company had restored full oil production and capacity to the levels they were before the attacks.

Zhejiang Petrochemical, 51% owned by Rongsheng Holdings, operates a 400,000 barrels per day refinery, built on an island off the archipelago city of Zhoushan in east China. The refinery is integrated with a petrochemical complex led by a 1.2 million-tonne per year ethylene facility.

SINGAPORE  - Saudi Aramco has signed a long-term deal with Zhejiang Rongsheng to supply crude oil to the Chinese company"s new refinery in eastern China, a source with knowledge of the matter said on Wednesday.

Rongsheng International Trading Co, the trading arm of Chinese conglomerate Zhejiang Rongsheng Holding Group, has already bought spot Omani crude ahead of the new refinery"s start-up.

Zhejiang Petrochemical, 51 percent owned by textile giant Rongsheng Holding Group, was in August awarded a quota to import 5 million tonnes of crude oil this year. The company plans to start up its 400,000-barrels-per-day refinery-petrochemical project in eastern China in late 2018.

Other buyers across Asia and Europe have also said they would cut back on purchases of Iranian oil, unleashing a burst of demand for West African and other crudes rich in distillates, such as grades from Saudi Arabia or the North Sea.

Saudi Aramco has signed agreements to acquire a 9% stake in the Zhejiang petrochemical project in the Chinese province of Zhejiang for an undisclosed price.

The Arabian company has signed a second agreement with Rongsheng Petrochemical, Juhua Group, and Tongkun Group, the other shareholders of Zhejiang Petrochemical, the holding company of the Chinese petrochemical project.

Saudi Aramco said that its involvement in the project will come with a long-term crude supply agreement and the ability to use Zhejiang Petrochemical’s large crude oil storage facility to cater to its customers in Asia.

Saudi Aramco CEO Amin Nasser said: “The agreements demonstrate our commitment to the Chinese market and help enhance the strategic integration of our downstream network in Asia. They will further strengthen our relationship with China and the Zhejiang province, setting the stage for more cooperation in the future.”

Last week, Saudi Aramco entered into a joint venture agreement with NORINCO Group and Panjin Sincen to develop a fully integrated refining and petrochemical complex in Panjin in another Chinese province Liaoning.

The joint venture, called Huajin Aramco Petrochemical is expected to invest over $10bn to build what will be a 300 thousand barrel per day refinery, equipped with a 1.5 million metric tons per annum (mmtpa) ethylene cracker and a 1.3 mmtpa PX unit.

(Yicai Global) Feb. 25 -- The national petroleum and oil giant of Saudi Arabia will purchase a minority stake in Zhejiang Petrochemical along with two other deals to expand its downstream business in eastern China.

Saudi Arabian Oil Company, also known as Saudi Aramco, penned three memorandums of understanding in eastern Zhejiang province, one of them with the Zhoushan municipal government involving a purchase of a 9 percent stake in ZP, the Asian division of the Dhahran-based parent posted on its official WeChat account on Feb. 23.

The deals show Saudi Aramco"s commitment to the Chinese market and will help to enhance the strategic integration of its downstream business network in Asia, Amin Nasser, the president and chief executive of Saudi Aramco said in the post.

Saudi Aramco will provide ZP with crude oil for refining in the latter"s new plant in Zhoushan for the long-term while making use of ZP"s large storage facilities to serve customers in Asia. ZP aims to provide 6 million tons of refined oil each year at the project in its hometown with with an investment of CNY173 billion (USD25.8 billion). The target firm can process 800,000 barrels of crude oil a day, Saudi Aramco"s post added.

Saudi Aramco also agreed with Zhejiang Provincial Energy Group to establish a large refined oil retail network in Zhejiang province within five years to integrate resources and make the Chinese firm into a competitive distribution channel.

Founded in 2015, ZP has a mixed ownership structure. Privately owned Rongsheng Petrochemical has a 51 percent stake while the two state-owned shareholders include Zhejiang Juhua Investment with a 20 percent stake as well as Zhoushan Ocean Comprehensive Development and Investment with a 9 percent stake.

Saudi Aramco signed three Memoranda of Understanding (MoUs) on Friday to purchase a 9 percent stake in Chinese Zhejiang Petrochemical"s integrated refinery and petrochemical complex in the city of Zhoushan, and to invest in a retail fuel network in the eastern region of China, the Saudi state-run energy giant announced.

Saudi Aramco"s involvement in the project will come with a long-term crude supply agreement and the ability to utilize Zhejiang Petrochemical"s large crude oil storage facility to serve its customers in the Asian region, according to the statement.

Saudi Aramco and Zhejiang Energy plan to build a large-scale retail network over the course of the next five years in the province, the statement added. The retail business will be integrated with the Zhejiang Petrochemical complex as an outlet for the facility"s refined products.

Saudi Aramco CEO Amin Nasser said the agreements demonstrate the company"s commitment to the Chinese market and would help enhance the strategic integration of its downstream network in Asia.

Saudi Arabian Oil Company (Saudi Aramco), one of the world"s top oil exporters, will continue to boost its downstream presence in China, after it formalized plans to build a 300,000-barrel-per-day refining and petrochemical complex along with Norinco Group and Panjin Sincen in Panjin, Northeast China"s Liaoning province, in February.

"This is a clear demonstration of Saudi Aramco"s strategy to move beyond a buyer-seller relationship to one where we can make significant investments to contribute to China"s economic growth and development," said Amin H. Nasser, president and CEO of Saudi Aramco.

It has also announced a plan to acquire a 9 percent stake in Zhejiang Petrochemical, an 800,000-bpd integrated refinery and petrochemical complex, controlled by private Chinese chemical group Zhejiang Rongsheng Holding Group.

The projects in Liaoning and Zhejiang have the potential to increase Saudi Aramco"s participated refining capacity to over 1 million bpd in China alone.

Figures from Bloomberg Intelligence reveal that Russia surpassed Saudi Arabia to become the largest crude oil exporter to China in 2016. Last year, China imported 71.49 million metric tons of oil from Russia while imports from Saudi Arabia were 56.73 million tons.

China is a strategic partner for Saudi Aramco and one of the most important customers globally, and the company is looking at both the export of oil and integration down the value chain in the Chinese market, he said.

"Integration with refining is what Saudi Aramco and our partners are looking at, and these opportunities will help to expand our presence in China, achieving a better balance between our upstream and downstream business segments, considering how much we export to China," said Nasser.

Nasser said the potential acquisition of petrochemical maker Saudi Basic Industries Corp, or SABIC, would also help the company strengthen its downstream sector in China.

Saudi Aramco aims to buy a controlling stake in SABIC, possibly the entire 70 percent owned by the Public Investment Fund - the kingdom"s top sovereign wealth fund.

"Part of the company"s strategy is to allocate 2 to 3 million bpd of crude to petrochemicals and expand our chemicals business globally," Nasser said. "China"s demand growth offers exciting opportunities for Saudi Aramco and its partners."

State oil giant Saudi Aramco signed an agreement to invest in a refinery-petrochemical project in eastern China, part of its strategy to expand in downstream operations globally.

Zhejiang Petrochemical, 51 percent owned by textile giant Zhejiang Rongsheng Holding Group, is building a 400,000 bpd refinery and associated petrochemical facilities that was expected to start operations by the end of this year.

This is the third such project in China that Saudi Aramco has set its sight on as it seeks to lock in long-term outlets for its crude oil and produce fuel and petrochemicals to meet rising demand in Asia and cushion the risk of a slowdown in oil consumption. Last month, Saudi Aramco signed a long-term deal with the Zhejiang project’s operator Zhejiang Rongsheng to supply crude oil.

The oil giant had not yet finalised 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 bpd 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.

Aramco also owns part of the Fujian refinery-petrochemical plant with Sinopec and Exxon Mobil Corp, and has plans to build a 300,000 bpd refinery with China’s Norinco. It is also in talks with PetroChina to invest in a refinery in Yunnan.

Saudi Aramco has signed a memorandum of understanding (MoU) to acquire a 9% stake in Zhejiang Petrochemical’s integrated refinery and petroleum distillates complex in Zhoushan, China.

The agreement was signed during Saudi Arabia’s Crown Prince Mohammed bin Salman’s state visit to China. It formalises a previously announced acquisition plan.

The company also signed two additional MoUs, one with Zhejiang Energy and the other with Rongsheng Petrochemical, Juhua Group, Tongkun Group and Zhejiang Petrochemical shareholders.

Saudi Aramco CEO Amin Nasser said: “The agreements demonstrate our commitment to the Chinese market and help enhance the strategic integration of our downstream network in Asia.

Private chemical group Zhejiang Rongsheng Holding Group controls Zhejiang Petrochemical. The company is currently building an 800,000 barrel-per-day (bpd) capacity refinery and petrochemical complex in the province.