Saudi Aramco is reportedly set to sign an agreement to purchase a stake in a refinery and petrochemical project in eastern China. Aramco's senior vice-president of downstream, Abdulaziz al-Judaimi, has been quoted in media reports as saying that the Saudi energy giant is set to invest in the Zhejiang project in eastern China.

The Zhejiang Petrochemical Company, 51 per cent owned by Chinese textile major Rongsheng Holding Group, plans to start its 400,000 barrels a day (b/d) refinery, which is integrated with a petrochemical plant in the eastern province of Zhejiang, in late 2018.

Last month, Aramco signed a long-term deal with Rongsheng to supply about 170,000 b/d crude oil for the project, to be located in the port city of Zhoushan.

Although Aramco’s share in the Zhejiang project is not yet known, this is set to be the Saudi firm’s third downstream investment in China.

Aramco also owns part of the Fujian integrated refinery and petrochemical complex with Sinopec and Exxon Mobil Corp, and has plans to build a 300,000 b/d refinery with China’s Norinco.

It is also in talks with PetroChina to invest in a refinery in the southwestern Yunnan province.

The first crude carrier supplying the upcoming Zhejiang complex should arrive in December or January, depending on when the project starts, Al-Judaimi has been quoted as saying.

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