On March 10 this year, China brokered the resumption of diplomatic relations between Saudi Arabia and Iran, and because the news was so sudden, many people were shocked and incredulous.
But this matter is not completely traceless, as early as before Saudi Arabia and Iran resumed diplomatic relations, there were rumors that Saudi Arabia wanted to buy 2 Type 052D destroyers, rumors with noses and eyes, although it feels that such a big deal is a bit fake, but to a certain extent, it also shows that China provides some kind of security for Saudi Arabia, in order to promote the reconciliation between Saudi Arabia and Iran.
After the resumption of diplomatic relations, the war in the Middle East, especially in Yemen, has subsided a lot, and Saudi Arabia's security has been guaranteed, and it is possible to discuss the big issue of making money together.
One area of cooperation between China and Saudi Arabia is petrochemicals.
As we mentioned earlier, Saudi Aramco and Sinopec jointly invested US$8.6 billion to build the Yanbu refinery project with an annual refining capacity of 20 million tons.
Last year, the Russian-Ukrainian conflict made it difficult for Russian refined oil products to be sold to Europe and the price declined, but other countries' refined oil products are in demand in international markets such as Europe. So Saudi Arabia engaged in a riot operation, buying a large number of refined oil products produced in Russia.
Saudi Arabia's own refining industry is working at full capacity to produce refined oil products and export them to European countries mired in the diesel crisis, such as the Yanbu refinery, which made a net profit of more than $1.4 billion from January to November last year, and its operating efficiency reached the best level in history.
From digging coal in Pingdingshan to selling it in Datong and making a lot of money, it was the magical reality of last year.
In order to survive in this increasingly magical world and continue to make a lot of money, Saudi Arabia turned to the East on a large scale.
Yes, making money is also a Saudi demand, and don't forget that when Credit Suisse was acquired, the National Bank of Saudi Arabia was the majority shareholder of Credit Suisse, and the Saudi National Bank lost nearly 80% of the transaction, more than $1 billion.
Pig-killing plates by permanent neutral countries, just ask if you are afraid.
So soon after Saudi Arabia and Iran resumed diplomatic relations, Saudi Arabia made a series of large-scale investments in China.
First, on March 36, it was revealed that Saudi Aramco, together with NORINCO Group and Panjinxin Chengye Group, planned to build a large-scale refining and chemical integrated joint unit in northeast China.
Huajin Aramco Petrochemical Co., Ltd., established in this project, is a joint venture jointly funded by Saudi Aramco, NORINCO Group and Panjin Xin Chengye Group, with the shareholding ratio of 30%, 51% and 19% respectively. The joint venture includes a refinery with a processing capacity of 300,000 barrels per day and a chemical plant with an annual capacity of 1.65 million tons of ethylene and 2 million tons of paraxylene.
On the same day, the signing ceremony of the Memorandum of Understanding between the People's Government of Guangdong Province and Saudi Aramco was held in Beijing. The MoU proposes a framework for cooperation in exploring investment opportunities in various fields, including energy cooperation, research and innovation, industrial projects, financial cooperation, and talent exchange.
The most exciting news of A-shares was on March 28, Rongsheng Petrochemical announced that in order to introduce overseas strategic investors, the company's controlling shareholder Rongsheng Holdings intends to transfer its 1.013 billion shares to AOC under Saudi Aramco at 24.3 yuan per share, with a total consideration of 24.6 billion yuan.
This is nearly ninety percent higher than the market price of Rongsheng Petrochemical at that time.
Saudi Arabia is really not bad for money.
Of course, Rongsheng Petrochemical will further consolidate the cooperative relationship with Saudi Aramco's existing crude oil procurement business and obtain a long-term stable crude oil supply of 480,000 barrels per day.
Share transfer is one thing, and there are still many follow-up cooperation.
China is already the largest importer of oil, and ensuring the safety of oil imports is crucial.
So there will definitely be more arrangements at a higher level.
As a result, Saudi Arabia's cabinet approved the decision to join the Shanghai Cooperation Organization on March 29, recognizing the country's dialogue partner in the Shanghai Cooperation Organization.
In addition, in the Middle East, there are not only crude oil, but also natural gas resources. CNOOC and Total Energy completed the first domestic purchase of imported liquefied natural gas (LNG) settled in RMB through the Shanghai Oil and Gas Exchange Center platform, with a volume of 3,200,000 to 3,400,000 million British thermal (about 65,000 tons), and LNG resources came from the GCC country of the United Arab Emirates.
This progress is so fast that one cannot help but imagine that more oil and gas trade will be settled in yuan in the future.
In addition, you can also imagine the cooperation between China and Saudi Arabia in other fields, such as new energy, which we mentioned earlier. At the end of last year, China Energy Construction Saudi Al Shubah's 2.6 GW photovoltaic power station project held a temporary construction commencement ceremony, marking the full launch of the project and officially entering the fast lane of performance.
In the future, there may be more Saudi new energy projects that need Chinese companies to go overseas for construction, and recently there has been a pullback in the Chinese prefix, if you want to do the Chinese prefix, you can pay attention to the relevant information.
Resources:
Foreign media: Saudi Arabia's cabinet approved the decision to join the Shanghai Cooperation Organization https://www.cls.cn/detail/1307873
【Pre-market must-read】Rongsheng Petrochemical premium nearly ninety percent introduced war investment Saudi Aramco https://www.cls.cn/detail/1306106
Credit Suisse was acquired by UBS at a four-fold discount, and its major shareholder, the National Bank of Saudi Arabia, lost more than $1 billion https://www.yicai.com/news/101706882.html
Guangdong Provincial Government Signs Memorandum of Understanding with Saudi Aramco?? Guangdong Provincial People's Government Portal https://www.gd.gov.cn/xxts/content/post_4140638.html
NORINCO, Saudi Aramco and Panjin Xincheng Group jointly build a large-scale refining and chemical joint plant-News-Shanghai Securities News · China Securities Network https://news.cnstock.com/news,bwkx-202303-5036564.htm
The construction of Saudi Arabia's Al Shubah 2.6 GW photovoltaic power station project undertaken by Chinese enterprises began - the State-owned Assets Supervision and Administration Commission of the State Council http://www.sasac.gov.cn/n2588025/n2588124/c26496993/content.html
Saudi Arabia, a major oil producer, muffled to grab Russian oil! Experts: Free up production capacity to increase export https://www.yicai.com/news/101479210.html
Article picture: Tuworm Creative, OneImage.com
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