Saudi Aramco signs MoU with Shandong Energy Group
Author : PCEC
14 December 2022
On December 7, the Saudi oil and gas giant Saudi Aramco and Shandong Energy Group signed a strategic cooperation agreement in Jinan to jointly develop project opportunities for refining and chemical integration in China.
Image: Saudi Aramco
According to the Memorandum of Understanding signed by the two parties, the cooperation includes a potential crude oil supply agreement and chemical product offtake agreement. In addition, the scope of cooperation will also involve refining and chemical integration, hydrogen energy, renewable energy and carbon capture technology.
Li Wei, chairman of Shandong Energy Group, said: "Both Shandong Energy Group and Saudi Aramco are important members in the international energy field. The two parties have many points of common interest and strong strategic complementarity, especially in the whole industry of oil and gas resource development and refining and chemical integration. In terms of chain development, there are many options and promising prospects.”
Mohammed Y. Al Qahtani, Senior Vice President of Saudi Aramco's downstream business, said: "China is currently vigorously promoting the process of refining and chemical integration. This time we can cooperate in China's energy industry center, and we will add a new business development path. I am very happy and very excited to see this collaborative spirit extend to hydrogen, renewable energy and carbon capture.”
Shandong Energy Group is a state-owned energy investment company in China. Previously, Shandong Energy Group's business was mostly concentrated in the coal industry. In addition to the agreement, Shandong Energy Group has invested in and acquired three petrochemical companies in China in the past few weeks.
The cooperation between Shandong Energy Group and Saudi Aramco will have three main goals. The first is to cooperate around potential opportunities in the field of refining and chemical integration, the second is to strive to build a prosperous oil downstream business sector, and the third is to cooperate in low-carbon fields such as hydrogen energy, renewable energy, and carbon capture technology in addition to the petrochemical industry, laying a business foundation for low-carbon green development.
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