China-GCC Coutries to Work Together in Energy Sectors for the Coming 3-5 Years
From：
Zhonglin International Group Date：12-11 1095 Belong to：Industry Related
On December 9th in Riyadh, the first China-Gulf Cooperation Council Summit was held at the King Abdulaziz International Convention Center. The summit marks China’s resolution to establish and strengthen its strategic partnership with GCC countries.
Xi Jinping, president of PRC, delivered a keynote speech titled "Carrying Forward the Past and Opening up the Future, Joining Hands and Advancing Together to Create a Better Future for China Sea Relations", emphasizing that in the next 3 to 5 years, China is willing to make efforts with the GCC countries in the following key areas: building a new system for all-round cooperation in energy sector; facilitating financial investment cooperation; expanding new areas for innovative technology cooperation; achieving new breakthroughs in aeronautics cooperation; and forging new highlights in language and cultural cooperation.
In terms of building a new system for all-round cooperation in energy sector, China will continue to import a large amount of crude oil from the Gulf Cooperation Council countries, expand the import of liquefied natural gas, and strengthen cooperation in upstream oil and gas development, engineering services, storage, transportation, and refining. Fully utilize the platform of Shanghai Petroleum and Natural Gas Trading Center to carry out RMB settlement for oil and gas trade. Strengthen cooperation in clean and low-carbon energy technologies such as hydrogen energy, energy storage, wind and solar power, smart grids, and localized production of new energy equipment. Establish a China Sea Forum on Peaceful Use of Nuclear Technology, jointly build a China Sea Nuclear Security Demonstration Center, and cultivate 300 professionals in peaceful use of nuclear energy and nuclear technology for the GCC countries.
To strengthen energy cooperation, Sinopec has inked huge cooperation agreements with two major Saudi giants. On December 9th, Sinopec and Saudi Aramco signed a cooperation framework agreement on the Fujian Gulei Phase II project. The second phase of the project plans to construct 16 million tons/year refining, 1.5 million tons/year ethylene cracking, and downstream derivative integrated units, which are expected to be completed and put into operation by the end of 2025. Meanwhile, Sinopec has signed a memorandum of understanding with Saudi Aramco and Saudi Basic Industries to jointly develop a large-scale project in Yanbu, Saudi Arabia to convert liquid raw materials into chemical products. This project will achieve collaborative optimization with Yanbu Refinery.
Yu Baocai, president of Sinopec, stated that over the years, the two sides have carried out a large number of fruitful cooperations in China and Saudi Arabia, establishing a deep friendship. This cooperation is a new milestone achieved on the basis of existing cooperation, fully demonstrating the high level of mutual trust and recognition among all parties, and also strengthening the confidence in jointly addressing energy transformation. Sinopec will continue to implement a high-level opening-up policy and contribute to the "the Belt and Road Initiative" and the "Saudi 2030 Vision".
Mohammad Katani, senior VP in charge of downstream business at Saudi Aramco, stated that these two projects will further assist China and Saudi Arabia in developing modern, efficient, and integrated downstream industries. At the same time, it further reinforces Saudi Aramco's long-term commitment to remain the reliable energy and chemical supplier to Asia's largest economy, ultimately benefiting all parties involved.
On March 8, 2022, Sinopec and Saudi Aramco signed a memorandum of understanding, covering Sinopec's existing refining and chemical projects as well as future expansion projects. The two sides will also jointly optimize the operation of the joint venture Fujian United Petrochemical Co., Ltd.
On August 3, 2022, Sinopec and Saudi Aramco signed a memorandum of cooperation on a package of cooperation in Saudi Arabia, covering investment in petroleum and petrochemical projects, petroleum and refining engineering services, material supply, equipment manufacturing, carbon supplementation, hydrogen energy and other fields.
Saudi Basic Industries is one of the world's leading diversified chemical enterprises, headquartered in Riyadh, Saudi Arabia. The company's manufacturing factories are located worldwide, with products covering chemicals, general and high-performance plastics, agricultural nutrients, and metals. The company will seek development opportunities and serve customers by expanding key terminal applications in fields such as construction, medical equipment, and clean energy.
