Saudi Aramco is reaching its goal… a place to store millions of barrels of oil in Asia

Saudi Aramco’s new refining deal to buy a 10 percent stake in Chinese chemical group Rongsheng Petrochemical Co. includes deals to store crude oil in eastern China and supply plastics and petrochemicals to an energy company in the Middle East.

Aramco announced on Monday that it was buying a controlling stake in Zhejiang Petrochemical Co., which operates China’s largest refinery with a capacity of 800,000 barrels per day, and that a deal to supply crude oil had ended. For a period of 20 years.

And Rongsheng said yesterday, Tuesday, on the Shenzhen Stock Exchange, in the first Saudi deal to store oil in China, Jiang’s company is offering Aramco three million cubic meters (about 18.6 million barrels) of storage space at the Sushan port. In eastern China.

Aramco, the world’s largest crude oil exporter, has long sought storage space in China to store crude closer to Asian customers and quickly meet demand in the region.

China, Aramco’s biggest crude importer, is likely to import a record amount of oil this year as its economy recovers from the coronavirus pandemic.

According to the disclosure, Aramco will maintain a minimum storage target level of 1.5 million tons (about 11 million barrels) at Zhoushan, and if the storage level falls below 750,000 tons, Aramco Zhejiang will have to reduce its supplies.

Aramco’s only crude oil storage facility in Asia is currently in Okinawa, Japan, where the state-run company last December renewed a contract to store about eight million barrels.

In addition to a deal announced on Monday to supply 480,000 barrels of crude oil a day, Aramco also agreed to supply Rongsheng, one of China’s largest polyester producers, with petrochemical feedstocks such as naphtha and paraxylene. Paraxylene is a raw material for making synthetic fibers and plastic bottles.

See also  Heavy shelling of Mykolayiv in southern Ukraine

It revealed that Rongsheng will replace Aramco with 800,000 tonnes per year of polyethylene and polypropylene used in the plastics industry and 300,000 tonnes per year of other chemicals over 20 years.

  • Rolf Colon

    "Creator. Award-winning problem solver. Music evangelist. Incurable introvert."

    Related Posts

    • World
    • January 11, 2024
    • 1073 views
    Japan is inspired by creative ideas to build earthquake-resistant homes

    For more than a century, Japan has been able to build earthquake-resistant homes on this island known for its severe earthquakes. Last week, after a 7.5-magnitude earthquake hit Ishikawa Prefecture…

    • World
    • January 10, 2024
    • 859 views
    More than 23 thousand martyrs.. Gaza health announced the new death toll news

    Today, Wednesday, the Ministry of Health in Gaza announced that the death toll from the Israeli occupation has risen to 23,357 martyrs, with 59,410 injured since the war began on…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    How to Choose the Right Mattress: Find the Best Fit for You

    How to Choose the Right Mattress: Find the Best Fit for You

    Emils Kerimovs on Wealthtech Revolution: Investing in the Middle East and Africa

    Emils Kerimovs on Wealthtech Revolution: Investing in the Middle East and Africa

    Forex Brokers Review: Is ITBFX A Safe Broker?

    Forex Brokers Review: Is ITBFX A Safe Broker?

    Best Kitchen Renovation Ideas to Upgrade Your Space

    Best Kitchen Renovation Ideas to Upgrade Your Space

    Where to Get a Professional Massage in Dubai

    Where to Get a Professional Massage in Dubai

    Dog Spay Surgery 101: Benefits, Risks, Cost, and Aftercare

    Dog Spay Surgery 101: Benefits, Risks, Cost, and Aftercare