Because Communist China is far from self-sufficient in oil production, the country relies on imports for more than 70% of its oil consumption. According to Sina news on March 13, Saudi Aramco finally decided to invest and build a refinery in Communist China on March 10. Located in Panjin City, Liaoning Province, the project has the capacity to process 300,000 barrels of crude oil per day and is expected to enter operation in 2024.
According to the news, Saudi Aramco originally signed an agreement of cooperation with China North Industries Group Corporation (NORINCO) and Panjin Xincheng in 2017, but the project was halted in 2020 as global oil prices crashed during the CCP virus (Covid) pandemic. In 2022, after the Russia-Ukraine war, international oil prices skyrocketed above 100 USD. Europe and the United States reduced oil imports from Russia, which is a good opportunity for Saudi Aramco. In addition to this joint project, Saudi Aramco currently holds a 25% stake in the Fujian United Petrochemical and a 22.5% stake in the Sinopec Senmei (Fujian) Petroleum.