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China And Saudi Arabia Are Strengthening Energy Pact

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China And Saudi Arabia Are Strengthening Energy Pact
08 Dec 2022
5 min read

News Synopsis

Energy cooperation between China and Saudi Arabia is expected to be strengthened as the two countries intend to secure supply chains in the sector, according to Saudi Energy Minister Prince Abdulaziz bin Salman. The kingdom is also expected to become a regional hub for Chinese industries.

Prior to the Chinese-Arab summit that begins on December 9 in Riyadh, Chinese President Xi Jinping made his remarks during a trip to Saudi Arabia. Over 20 tentative agreements totaling 110 billion Saudi riyals ($29 billion) are expected to be signed by the Chinese delegation with Saudi Arabia in the areas of energy, security, and investments.

The minister said in a statement provided to the Saudi Press Agency on Wednesday that Saudi Arabia and China endeavor to enhance cooperation in the energy sector supply chains, by establishing a regional center for Chinese factories in the kingdom by taking advantage of the kingdom’s distinguished location among the three continents of Asia, Africa, and Europe,” 

He continued by saying that Saudi Arabia would continue to be China's trustworthy partner in the energy industry and in maintaining the security of the world oil market. The minister emphasized that the nations are strengthening their ties and making cooperative investments, including in China's Belt and Road Initiative and integrated petrochemical and refining facilities in both nations.

In the first 10 months of 2022, Saudi Arabia contributed 18% of China's overall crude oil purchases, with imports totaling 73.54 million tonnes, or 1.77 million barrels per day, according to Chinese customs data.

With trade between the two countries totaling $87.3 billion in 2021, China is the kingdom's biggest trading partner. According to reports, Chinese imports from Saudi Arabia were $57 billion, compared to $30.3 billion in exports to the country.