February 21-22, Saudi Crown Prince Mohammed bin Salman (Mohammed bin Salman) visited China, during which a number of Chinese companies signed tens of billions of dollars of cooperation and cooperation 35 memorandums of understanding with Saudi government departments and enterprises. The total amount of more than 28 billion U.S. dollars, involving various industries such as petrochemicals, manufacturing, new energy, communications and so on. Among them, petrochemical industry investment amounted to more than 17 billion U.S. dollars, accounting for about 60% of the total amount.
Saudi Aramco signed three memorandums of understanding (MOUs) on Feb. 22 aimed at expanding its downstream business in Zhejiang Province, one of China's most economically developed provinces, and then signed related cooperation agreements with China North Industries Group and Liaoning Province. Meanwhile, Saudi Basic Industries Corporation (SABIC) and Fuhaitron are about to launch a 2-million-ton ethylene and downstream processing project in Gulei. Saudi Arabia's petrochemical giant enterprises or joint ventures or shares have settled in China, Zhejiang, Liaoning, Fujian , once again foreign petrochemical giants favor!
Process Jun take you one by one to see the details
Saudi Crown Prince of China
Saudi Aramco to acquire a 9% stake in Zhejiang Petrochemical Company
Saudi Aramco's first in Zhejiang Province and Zhoushan City Government signed a proposed acquisition of ZheJiang Petrochemical Co. Petrochemical Company Limited (hereinafter referred to as ZPC) 9% stake , but did not disclose the exact amount.
Founded in 2015, Zhejiang Petrochemical Company is a mixed-ownership enterprise, with the controlling shareholders being the private company Rongsheng Petrochemical Company (002493.SZ), which accounts for 51% of the shares, the state-owned company Zhejiang Juhua Investment Company Limited, and the private company Zhejiang Tongkun.
Zhejiang Juhua Investment Co.
ZPC is building a 40 million tons/year refining and chemical integration project. In 2014, the State Council put forward the "national planning to determine the petrochemical base of the refining and chemical integration project to open up to social capital" in the context of solving the problem of PX raw materials are seriously restricted by foreign countries and built.
Public information shows that the Zhejiang Provincial Government originally held 9% of the shares of ZPC, corresponding to a capital contribution of 2.142 billion yuan.
Saudi Crown Prince's China trip
Service supply ZPC refining and chemical integration project
The second contract was signed with Rongsheng Petrochemical, Zhejiang Juhua Investment Company Limited and Zhejiang Tongkun Investment Company Limited. Saudi Aramco will provide long-term crude oil supply to ZPC's refining and chemical integration project, as well as leverage ZPC's large crude oil storage facilities to serve customers in Asia.
The photo shows Hu Zhongming, Chairman of Juhua Group (first from left), Li Shuirong, Chairman of Zhejiang Rongsheng Holding Group (second from left), and Amin Nasser, President and CEO of Saudi Aramco. Amin Nasser, President and CEO of Saudi Aramco, and Chen Shiliang, Chairman of Tongkun Group (first from right).
Located on Yushan Island, Zhoushan City, Zhejiang Province, the ZPC Refining and Chemical Integration Project, with a total investment of RMB 173 billion, will be constructed in two phases, with an annual processing capacity of 20 million tons of crude oil, an annual production of 5.2 million tons of aromatics, an annual production of 1.4 million tons of ethylene, and an annual supply of 6 million tons of refined products per year in each phase.
The project plans to build 16 berths for oil products as well as liquid workers, of which two 50,000-ton berths and one 100,000-base oil products special berth were built in one phase.
In the future, ZPC will also plan to build the third phase of the project (20 million tons), by then, it will form 60 million tons of crude oil processing capacity per year, becoming a world-class large-scale petrochemical industry base.
Last October 18, the second World Oil Conference, Saudi Aramco has signed a memorandum of cooperation with the Zhejiang Provincial Government, indicating that it will cooperate with ZPEC in production capacity, the establishment of crude oil storage and transportation, sales bases, engaged in the relevant oil storage, transportation, trade, sales and other work, and plans to take shares.
Saudi Crown Prince's China trip
Investment in refined oil product retailing with Zhejiang Energy
The third contract was signed between Saudi Aramco and Zhejiang Energy Group regarding investment in refined oil product retailing network. The two parties plan to establish a large-scale retail network for refined oil products in Zhejiang Province over the next five years. The retail business will be integrated with ZEPC as a distribution channel for refined products.
Saudi Aramco's official microblog said this is to explore potential investments in gas station retail networks in East China, as well as related investments in other downstream areas.
The cooperation with Zhejiang Energy Group in the retail network of refined oil products, on the other hand, is Saudi Aramco's recognition of its distribution channels.
In September 2017, Zhejiang Energy and Zhejiang Petrochemical funded and *** together established Zhejiang Petroleum Company Limited (hereinafter referred to as Zhejiang Petroleum), which is mainly engaged in the business of crude oil trading, oil storage and transportation, marine services mainly fuel oil refueling, and sales of refined oil products.
Zhejiang Petroleum staff has said that the company is mainly responsible for the sale of refined oil produced by ZPC. Sales channels include bulk wholesale, direct sales distribution, self-operated retail and export.
Saudi Arabian Oil Company (Saudi Arabian Oil Company), China National Armaments Industry Corporation (China National Armaments Industry Corporation), and Saudi Arabian Oil Company (Saudi Arabian Oil Company) are the largest joint venture oil companies in China. (hereinafter referred to as China National Hydrocarbons) and Panjin Xincheng Industrial Group (hereinafter referred to as Panjin Industrial)*** signed an agreement, the three parties intend to invest more than 69.5 billion yuan (about 10.09 billion U.S. dollars) in the city of Panjin, Liaoning Province, and set up a Huajin Aramco Petroleum Chemical Co. Ltd. in Panjin, Liaoning Province, China (hereinafter referred to as Huajin Aramco).
Saudi Aramco President and CEO Amin Nasser (center) with Chinese President and CEO Amin Nasser. Nasser (center), President and CEO of Saudi Aramco, and Jiao Kaihe (left), Chairman of China North Industries Group Corporation and Tang Yijun, Governor of Liaoning Province, pose for a group photo after the meeting.
Upon completion of the project, China National Weapons will hold a 36% stake in Huajin Aramco, Saudi Aramco will hold 35%, and Panjin Industrial will hold 29%.
Huajin Aramco project is expected to cover an area of 598 hectares, with a planned annual refining capacity of 15 million tons (300,000 bpd), ethylene capacity of 1.5 million tons and PX capacity of 1.3 million tons, etc., aiming to become a world-class integrated refining and chemical base.
Saudi Aramco CEO Nasser (amin nasser) said the project clearly demonstrates Saudi Aramco's corporate strategy: China and Saudi Arabia have transitioned from the previous relationship of buyer and seller in the petrochemical sector to a situation where Saudi Arabia can make a significant investment in China to contribute to the country's economic growth and development.
Seventy percent of the crude oil in the Huajin Aramco joint venture will come from Saudi Aramco.
According to Liaoning Daily, the Sino-Saudi joint venture refining project was approved by the Liaoning provincial government in July 2015, and is expected to add 100 billion yuan in sales revenue, 11 billion yuan in profit and 20 billion yuan in tax revenue annually for the Northeast region upon completion.
The Huajin Aramco project will also significantly boost the refining and petrochemical production capacity of China Arms.
In the early 2000s, China National Hydrocarbons began to enter the petroleum industry, and its petroleum business now covers oil and gas exploration and development, trading of crude oil and refined products, oil and gas warehousing and transportation, petroleum refining, and liquefied natural gas (LNG), forming a relatively complete industrial chain.
By the end of 2017, China Hydrocarbons had oil and gas exploration blocks in six countries with geological reserves of more than 1 billion tons, of which the annual trade volume of crude oil and refined products reached tens of millions of tons. Currently, China Hydro's annual refining capacity in Liaoning Province has reached 8 million tons.
In May 2017, China Hydro signed a Joint Development Agreement with Saudi Aramco and Panjin Industry to ****together develop the " China Hydro Fine Chemicals and Raw Materials Project" project, and held a groundbreaking ceremony.
Panjin Industrial is a wholly state-owned company funded by the Panjin Liaobin Coastal Economic Zone State-owned Assets Management Office, established on November 1, 2010, with a registered capital of about 940 million yuan.
In addition, Saudi Arabia's Saudi Aramco is cooperating with China's Liaoning Province on more than just refining projects. By the end of 2019, Saudi Aramco, Beifang Huajin Chemical Industry Group Co. and Liaoning Transportation Construction Investment Group will form a tripartite marketing joint venture *** to develop retail gas station projects in China together.
Saudi Crown Prince's China trip
SABIC launches petrochemical project in Fujian
The project is a new joint venture between Fujian Fuhaitron Petrochemicals Co. (Fuhaitron) and Saudi Basic Industries Corporation (SABIC).
Fujian Fuhaitron Petrochemicals Co.
Public information shows that SABIC this time hand in hand with the partner - Fujian Fuhaitron Petrochemical Company Limited, registered in October 27, 2017, by Fujian Fuhua Gulei Petrochemical Company Limited (Fuhua Gulei Petrochemical Company) and Tenglong Aromatics in accordance with the 90:10 equity ratio. Fuhua Gulei Petrochemical was formed by Fuhua Group and Zhangzhou Jiulongjiang Group*** with the same capital. Fuhaitron officially took over the Tenglong Aromatics rectification and repair project after its establishment, and successfully restarted the aromatics project at the end of 2018.
At present, the project Fujian Petrochemical Complex project 2 million tons of ethylene and downstream deep processing device social stability risk analysis is in the process of publicity.
Saudi Crown Prince's China trip
Petrochemical project cooperation and what other Chinese companies?
The information provided by the Forum's conference team shows that in the series of petrochemical cooperation projects signed, the scale of funds involved is tied for first place with Guangdong Yongshun Group (Winson Group, hereinafter referred to as Yongshun Group), Shanghai Wison Group (Wison Group), and the Saudi government's Saudi Arabia. Wison Group) signed a memorandum of understanding with a Saudi government department.
The memorandum of understanding between Winson Group and the Saudi Ministry of Energy, Industry and Mineral Resources and Esnad Al Rowad involves US$5.6 billion in investments in the petroleum and chemical sectors.
Founded in 1998, Yungsun Group's core business includes oil trading, offshore oil supply, and oil storage and terminal facilities, etc. In addition to China, Yungsun Group has investments or offices in Singapore, Dubai and some Asian countries.
Wison Group and Saudi Arabia's General Investment Authority also signed a $5.6 billion cooperation project in the petrochemical field. According to the official website, Wison Group was founded in 1988, and now takes energy and chemical services as its main business, covering the storage and utilization of coal, oil, natural gas and other basic energy sources, the manufacture of marine engineering equipment and the development of new downstream chemical materials.