MOSCOW (MRC) -- State oil giant
Saudi Aramco has signed a contract with Chinese oil refiner North Huajin
Chemical Industries Group Corp to supply crude in 2017, two sources with
knowledge of the matter said on Monday, reported Reuters.
contract, the first between Aramco and Huajin, comes as Saudi Arabia attempts to
regain its status as the top crude supplier to China, the world's second-largest
oil consumer, this year after losing the top spot to Russia in
Saudi Aramco will supply Arab Extra Light crude to Huajin to enable
the Chinese state-controlled refiner to produce more naphtha for its
petrochemical production, one of the sources said.
Saudi Aramco did not
respond to an e-mail seeking comment. Huajin, a unit of China's military group
NORINCO, could not be immediately reached for comment.
Top global oil
exporter Saudi Arabia has been exploring new ways to sell more crude to China by
offering spot cargoes and providing better credit terms.
could also start supplying crude to the Huizhou refinery owned by China National
Offshore Oil Corp (CNOOC) after an expansion that is expected to finish in the
Huajin operates a crude oil refinery in Panjin in
Liaoning province with a processing capacity of 6 MMtpy and a petrochemical
plant in Panjin that produces 700,000 tpy of ethylene, according to an
announcement from its listed unit North Huajin Chemical Industries Co
The company also has fertilizer plants in the Inner Mongolia region
and in the Xinjiang region.
As MRC informed earlier,
in June 2016, Saudi Arabian Oil Co. and Saudi Basic Industries Corp.
(Sabic) became one step closer to building their first plant to process
crude directly into chemicals, cutting out a link in the production chain from
hydrocarbons to the finished products that go into plastics and other consumer
goods. The state-owned companies signed an agreement to study such a project to
be located in Saudi Arabia, they said in a statement. A joint venture is
possible if the companies decide to move ahead after the study is completed by
early 2017, they said. Oil companies normally refine crude into transportation
fuels including gasoline and diesel and leave byproducts such as naphtha to be
processed separately into chemicals.
audi Aramco is an integrated oil and
chemicals company, a global leader in hydrocarbon production, refining processes
and distribution, as well as one of the largest global oil exporters. It manages
proven reserves of crude oil and condensate estimated at 261.1bn barrels, and
produces 9.54 million bbl daily. Headquartered in Dhahran, Saudi Arabia, the
company employs over 61,000 staff in 77 countries.