Saudi Aramco sign $10 billion joint venture in China
February 25, 2019
The new refinery project in China’s Northeast province of Liaoning was agreed by Saudi Crown Prince Mohammed bin Salman (MBS) during his two-day visit to China, Al-Jazeera reports.
China is likely to become an increasingly important ally for Saudi Arabia, both economically and politically, as the middle-eastern state faces frosty ties following the alleged government-sponsored assassination of journalist Jamal Kashoggi last year.
China is already Saudi Arabia’s largest trading partner – bilateral goods trade came to $63.3 billion last year, according to Al-Jazeera reports. There is also a history of large deal signings between the two nations, with MBS’s father signing $65 billion in energy deals two years ago.
The Liaoning deal will contribute to Aramco’s expansion strategy, and will be a useful boost to the investment-starved Liaoning province, where growth has been sluggish in recent years.
MBS also met with other high-ranking Chinese officials to express reciprocal support for Beijing’s Belt and Road infrastructure program and Saudi Arabi’s Saudi Vision 2030 initiative.