Saudi Aramco Suspends $10 Billion China Oil Refinery Venture

[-blitzkrieg-]

 

[RoadRunner401]

Its business after all. No need to get sentimental about it. China chose Iran as it makes sense for country close by and arch rival of the US versus a country that is far from China and a staunch US supporter. I also agree with a gentleman above that next will be pulling investment from Pakistan.

Ok, So, when House Of Saud Invested in India over Pakistan, Most called it a business decision because India is a bigger market, Now you are claiming that the House of Saud is pulling out of the worlds number one economy because it's a business decision, Kind of confused here, could you please explain how every major corporation in the world wants to set up MFG plants and business in china to take advantage of its massive economy and consumer buying power and you are claiming House of Saud is pulling out because it makes business sense?

 

[IceCold]

Ok, So, when House Of Saud Invested in India over Pakistan, Most called it a business decision because India is a bigger market, Now you are claiming that the House of Saud is pulling out of the worlds number one economy because it's a business decision, Kind of confused here, could you please explain how every major corporation in the world wants to set up MFG plants and business in china to take advantage of its massive economy and consumer buying power and you are claiming House of Saud is pulling out because it makes business sense?

Think it this way, its not always about the money but there is a strategic reasoning. US and Saudis wont Iran to choke, which is why Saudis gave this olive branch to China but China did not take the bait and instead decided to go on with Iran, world largest economy etc is fine however Saudis would not get along if China moves with Iran.
India is firmly in the US camp as are saudis hence bigger market or not Saudis are going to invest in India, Pakistan was again offered an olive branch however while we are eager for saudi investment and becoming part of CPEC however we too have a strategic interest and that interest dictates us to be in China's corner. Hence we might be seeing Saudis pulling out altogether from CPEC.

 

[-blitzkrieg-]

You cant blame them considering China slammed the door on their face by signing 400 billion dollars investment agreement with Iran. I would expect they would scale back their investment in CPEC as well including Oil Refinery project in Gawadar. China effectively choose a side by siding with Iran with such massive investment promise.

Its business after all. No need to get sentimental about it. China chose Iran as it makes sense for country close by and arch rival of the US versus a country that is far from China and a staunch US supporter. I also agree with a gentleman above that next will be pulling investment from Pakistan.

Its still a draft ..not signed..it first came to public in 2016..4 years back!!
rest assured Saudis were given enough leeway by Chinese to replace Iran or any other potential oil giant.

 

[艹艹艹]

Aramco bring backs talks on a $10bn refinery with China​

February 8, 2022, 3:13 PM UTC

• Firm discussing refining, petrochemical venture with Norinco
• Negotiations come as oil’s surge transforms Aramco’s finances

Saudi Arabia’s state oil company Aramco has revived discussions to build a multi-billion dollar refining and petrochemicals complex in China, according to several people with knowledge of the matter.

Aramco is holding preliminary negotiations about a facility in the Northeastern province of Liaoning with partners including Norinco, a state-owned defense contractor, said the people.

Talks over what was meant to be a $10 billion venture were suspended in 2020 as oil crashed at the start of the pandemic. Now, with crude approaching $100 a barrel, Aramco’s finances have been transformed, freeing up money for investment in its biggest export market.

Aramco and Norinco signed a framework agreement in 2017 to construct a refinery capable of handling 300,000 barrel per day of crude. They were also meant to build a 1.5-million-ton-per-year ethylene plant.

Saudi Aramco cut spending and shelved several projects in 2020 to protect its $75 billion annual dividend, the world’s biggest. Its cashflow has jumped this year and rose above its quarterly dividend in the second and third quarters.

The company’s downstream business, which includes chemicals subsidiary Sabic, swung to a profit as margins for refined fuel climbed. The unit -- which includes refineries, retail operations, trading and Sabic -- made a $4 billion profit before interest and tax in the third quarter.

 

[Han Patriot]

Yup oil price is rising rapidly due to money printing.