Aramco Withdraws from Oil, Petrochemical Refinery Project in China
Bloomberg quoted its sources saying that the Saudi company, Aramco, had suspended its participation in a project to build an oil and petrochemical refinery in China, worth 10 billion dollars.
The sources said that the decision made after negotiations with its Chinese partners, and it is closely related to the uncertainty about the energy market prospects.
In February 2019, Saudi Arabia and China signed an agreement worth 10 billion dollars to build a refinery and petrochemical complex in China, when Mohammed bin Salman visited Beijing.
The agreement stipulated the construction of an oil refinery in Panning city, Liaoning Province, with a capacity of 300,000 barrels per day, a unit for the production of ethylene with a capacity of 1.5 million tons per year, and a line for the production of paraxylene with a capacity of 1.3 million tons per year.
It was supposed to launch it in 2024, and Saudi Aramco would provide 70% of the raw materials as planned.
The Saudi decision comes when oil markets are witnessing a decline in prices and in energy demand due to the Corona pandemic. Therefore, all companies in the world are reviewing investment projects.