With The Signing Of Rongsheng Tong Kun And So On, Saudi Amy Intends To Acquire 9% Stake In Zhejiang Petrochemical Company.

Saudi Arabia's national oil company (Saudi Aramco, hereinafter referred to as Amy) is stepping up its pace of layout in China.

With the signing of Rongsheng, Tong Kun and Juhua, Saudi Amy intends to buy 9% stake in Zhejiang Petrochemical Company.

In February 22nd, Armin, President and chief executive of Saudi aramy, signed an agreement with Chairman Chen Shiliang of Tong Kun group, Li Shuirong, chairman of Zhejiang Rongsheng holding group, and Hu Zhongming, chairman of giant chemical group company.

In February 22nd, during the visit of Prince Mohammed of Saudi Arabia to China, the international cooperation center of China's national development and Reform Commission and the Saudi Investment Administration jointly held in Beijing.

More than 1300 representatives from government departments, enterprises and financial institutions in China and Saudi Arabia participated in the high-level dialogue and industry docking with the in-depth implementation of the "one belt road initiative" and the Saudi "2030 vision" docking.

In recent years, China has become Saudi Arabia's largest trading partner. Saudi Arabia has been China's largest trading partner in West Asia and North Africa for 14 consecutive years, and China is also the largest destination for Saudi Arabia's FDI.

On this "China Saudi investment cooperation forum", petrochemicals has become one of the 10 key areas for policy implementation and project docking between representatives of China and Saudi Arabia, and the rest areas include electronic information, digital economy, smart city, cultural tourism, education and medical treatment.

At the forum, 35 cooperation agreements were signed between enterprises and institutions in China and Saudi Arabia.

It is worth noting that Saudi Arabia Amy, the world's largest exporter of crude oil, signed an agreement with relevant parties to announce the acquisition of a 9% stake in Zhejiang Petrochemical Co., Ltd. (Zhejiang Petrochemical), which is located at 800 thousand barrels of Japanese crude oil processing capacity in Zhoushan, Zhejiang.

At the scene, Saudi Amy signed 3 memorandums of understanding.

The first contract was signed by Saudi Amy and the Zhoushan municipal government to acquire a 9% stake in Zhejiang Petrochemical Company Limited.

The second contract is AminNasser, President and chief executive of Saudi Amy, and has signed agreements with 3 Chinese entrepreneurs, Chen Shiliang, chairman of Tong Kun group, Li Shuirong, chairman of Zhejiang Rongsheng holding group, and Hu Zhongming, chairman of Juhua Group Company.

Saudi Amy will provide long-term crude oil supply to the project and make full use of Zhejiang Petrochemical's large crude oil storage facility to provide services to customers in Asia.

As part of this project, the third contract was signed by Saudi Aramis and Zhejiang energy for investment in the refined oil retail network.

According to the partners' plan, in the next 5 years, a large scale retail oil product network will be established in Zhejiang province. The retail business will be integrated with Zhejiang Petrochemical Company as a distribution channel for refined products.

"These agreements demonstrate our commitment to the Chinese market and help strengthen our strategic integration in the downstream business network of the Asian market," said AminNasser, President and chief executive of Saudi Amy, Armin.

This will further strengthen our relationship with China and Zhejiang and lay the foundation for further cooperation.

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It is understood that the first phase of the project includes a new refinery with a capacity of 400 thousand barrels per day, equipped with 1 million 400 thousand metric tons of ethylene cracking unit and 5 million 200 thousand tonnes of aromatics annually.

The two phase will increase the oil refining capacity of 400 thousand barrels per day on the basis of the first phase, greatly enhancing the integration of chemical production capacity.

Statistics show that the Zhoushan petrochemical refining and chemical integration project is located in the city of Beijing. The total scale of the project is 40 million tons / year refining, 10 million 400 thousand tons / year aromatics and 2 million 800 thousand tons / year ethylene. The total investment is about 160 billion yuan. The project is implemented in two phases, and the project is expected to be put into operation by the end of this year.

The project is also one of several large-scale private refinery projects invested by our private enterprises after China's relevant policies have been liberalized.

In fact, as early as the "second world oil merchants conference" held in 2018, Saudi Amy has signed a memorandum of understanding with the Zhejiang provincial government, and the Zhejiang provincial government has held a 9% stake in Zhejiang petrochemical.

At that time, Zhu Daming, senior vice president of Saudi Amy downstream business (AbdulazizM.Al-Judaimi), said: "we are looking for new opportunities in the field of refining and petrochemical facilities, and plan to further increase investment in China.

Our expanding customer base in China has benefited from the company's continuous attention and great attention to the Chinese market. "

The signing of the 3 agreements in February 22nd this year is bound to attract worldwide attention from petroleum, petrochemical, petrochemical polyester and capital markets.

It is expected that the news will soon benefit the shares of Tong Kun, Rongsheng and other companies.

The investment is over 10 billion dollars!

Saudi Amy will jointly build a new petrochemical project in Liaoning

In February 22nd, at the same time as signing with Rongsheng, Tong Kun and Juhua, Saudi Amy also played important pieces in Northeast China.

Saudi Amy signed a cooperation agreement with China ordnance industry group and Liaoning Panjin Xincheng group to develop a refinery complex in Panjin City, Liaoning province.

The Liaoning provincial government website announced that the signing of the joint venture marks the entry into the substantive stage of the Huajin Amis petrochemical project.

After the establishment of the joint venture, a world-class petrochemical industrial base will be built up with intensive, high-end and differentiated.

The project includes 15 million tons / year oil refining, 1 million 500 thousand ton / year ethylene, 1 million 300 thousand ton / year parylene unit, which is another major foreign investment project in Liaoning after BMW's new factory project.

According to the news of the official website of Saudi Aram, the total investment of the project is more than $10 billion, which will become the largest Sino foreign joint venture in China and will be put into commercial operation in 2024.

Partners will set up a new company, Huajin Amy petrochemicals Co. Ltd., Saudi Aramis owns 35% stake, and weapons industry group and Panjin Xincheng share 36% and 29% respectively.

Saudi Amy will provide up to 70% of the crude oil supply.

Saudi Amy said that in addition, it planned to develop the retail business of finished oil products. By the end of 2019, the three parties of the Saudi Arabia Amy and Northern Hua Jinhe Liaoning pportation construction investment Refco Group Ltd will form a joint venture for marketing and establish a retail gas station network in the target market.

Data show that in May 2017, Saudi Aramco, China North Industries Group Corporation and Panjin Xincheng group three parties jointly signed a joint development agreement on oil refining, chemical and retail in Panjin, Liaoning.

Foreign capital petrochemical projects have been concentrated in China recently. What signals have they released?

Up to now, Saudi Aramis has joined the Fujian joint petrochemical company in China and intends to participate in Yunnan petrochemical.

Since the second half of 2018, the industry has been very busy.

Big foreign projects have been stationed in China.

In July 2018, the German Basf Inc signed a memorandum of understanding on non binding cooperation with Guangdong province in Berlin, Germany. It will invest 10 billion US dollars to build a fine chemical integration base in Guangdong Zhanjiang Donghai Island chemical industrial park.

In September 2018, Guangdong and Exxon Mobil Corp signed a series of agreements in Guangzhou, involving 10 billion US dollars exclusively petrochemical projects settled in Guangdong, Huizhou and Dayawan.

The project will include an annual production capacity of 1 million 200 thousand tons of ethylene, flexible feed steam cracking unit, two high performance polyethylene production lines and two differential polypropylene production lines.

In October 16, 2018, CNOOC and Holland Royal Shell Group signed a memorandum of understanding on the cooperation between Huizhou petrochemical and chemical projects in Hague, and decided to build three projects in China with a total investment of billions of dollars.

The aim is to give full play to the advantages of industrial clusters, and create a large scale refining and chemical integration base in the world with a scale and competitiveness in Dayawan.

The investment of these projects is not aimed at China's excellent market environment advantages and industrial chain cost advantages, but these projects extend to the downstream products of oil refining in the industrial chain.

With the entry of international chemical giants such as Saudi Amy and so on, China, especially the southern coastal areas, has become a "hot spot" for the development of refining and chemical industry.

The diversification of the main body of the refinery market has brought about great changes in the domestic industrial structure, and will soon usher in the competition of high level and high level. The refining and chemical industry will face a reshuffle.

In the face of more open market competition in the future, China's refining and chemical industry will usher in the era of "competency based". Accelerating pformation and upgrading and upgrading its competitiveness will become an effective way for refining and petrochemical enterprises to break through the benefits.

No matter "first" or "late", ability will determine the survival and development of enterprises. Whoever can take the lead can win the first opportunity.