Saudi Aramco has signed a Memorandum of Understanding (MoU) with China’s Zhejiang Free Trade Zone which will facilitate its planned acquisition of a 9% stake in a 400,000 barrels a day (b/d) refinery in the region.
The agreement will also include a long-term crude oil supply agreement and give Saudi Aramco the ability to use Zhejiang Petrochemical’s large crude oil storage facility to serve its customers in Asia.
The MoU builds on prior agreements signed during Crown Prince Mohammed Bin Salman’s visit to China in February.
In a statement issued yesterday (5 September), Saudi Aramco said the MoU ‘also allows the parties to evaluate potential opportunities for investment in other parts of the value chain’.
Saudi Aramco added: ‘These may include refining and petrochemical production, storage and trade of crude oil and natural gas, retail, as well as distribution of oil products within the Zhejiang Free Trade Zone.’