The logo of Saudi Aramco at its headquarters in Dhahran, Saudi Arabia. Picture:AHMED JADALLAH/REUTERS
Aramco said on Monday it had agreed to acquire a 10% stake in privately controlled Rongsheng Petrochemical for about $3.6bn . The deals are the biggest to be announced since Chinese President Xi Jinping visited the kingdom in December where he called for oil trade in yuan, a move that would weaken the US dollar’s dominance in global trade.In a deal brokered by China, Iran and Saudi Arabia agreed to re-establish relations earlier this month after years of hostility that had fuelled conflicts across the region.
The deal also highlights growing competition between Saudi Arabia and its ally Russia in crude supplies to China. The Liaoning project, in the city of Panjin, will be Aramco’s second major refining-petrochemical investment in China and follows the world's top oil exporter reporting a record profit of $161bn in 2022.
Construction at the Panjin complex will start in the second quarter after the project secures the required administrative approvals, Aramco said. The plant is expected to be fully operational by 2026, it added.State-owned Norinco Group, a Chinese military equipment maker, owns 51% of Hapco while Aramco and Panjin Xincheng hold stakes of 30% and 19%, respectively.