Saudi Aramco looks to become China’s biggest crude supplier

Saudi Aramco’s crude supply deals with China come as Beijing looks to reduce its reliance on US crude imports amid a trade war with Washington. Above, Aramco’s Abqaiq oil facility. (Reuters)
Updated 28 November 2018
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Saudi Aramco looks to become China’s biggest crude supplier

  • New supply contracts make it very likely that Saudi Aramco next year will become China’s largest supplier
  • Russia currently accounts for the lion’s share of China’s oil imports, supplying some $23.7 billion worth of crude last year

LONDON: Saudi Aramco is moving closer to becoming China’s largest supplier after striking five new crude supply deals with Beijing.
It will help to take the total volume to 1.67 million barrels per day (bpd).
“The new supply contracts make it very likely that Saudi Aramco next year will become China’s largest supplier, a position it also held from 2006 until 2016,” the Saudi oil company said in a statement.
Russia currently accounts for the lion’s share of China’s oil imports, supplying some $23.7 billion worth of crude last year, or 14.6 percent of its total oil imports.
Top Aramco officials this month attended the first China International Import Expo in Shanghai.
The delegation included Ahmed Al-Khunaini, manager of Saudi Aramco’s Crude Oil Sales and Marketing Department, and Anwar Al-Hejazi, Aramco Asia president.
Aramco earlier agreed a crude oil supply agreement with Zhejiang Petroleum and Chemical Co. (ZPC) on the sidelines of the Asia Pacific Petroleum Conference (APPEC) in Singapore.
“Large, integrated crude-to-chemical projects like ZPC and Hengli are the future of China’s downstream industry and I am excited Saudi Aramco will be part of their success story,” said Saudi Aramco Senior Vice President Abdulaziz Al-Judaimi.
The new supply agreements are the result of Aramco’s marketing efforts that focus on customer diversification, strategic relationships, and tapping regional demand previously not supplied by Saudi Aramco, the national oil company said.
They are an important part of diversifying Saudi Aramco’s customer base and capturing a large share of China’s future incremental oil demand, which will increasingly come from private refiners.
Annual economic growth of more than 6 percent is supporting demand for oil imports in China as the country adds more refining and petrochemical capacity.
Beijing is also seeking to reduce its reliance on US crude imports amid a trade war with Washington, analysts say.
“Chinese buyers, anticipating that crude and LNG could go on the list if tensions escalate further, are looking to alternative sources,” Richard Mallinson, co-founder of London consultancy Energy Aspects, told Arab News in August.
OPEC already provides 56 percent of China’s oil imports, according to the International Energy Agency.
China’s crude imports grew year on year during the third quarter of 2018 according to data from Bloomberg NEF, despite a fall in imports coming from Iran.
China imported nearly 10 million barrels of oil per day last month.


Samsung delays Galaxy Fold media events in China

Updated 22 April 2019
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Samsung delays Galaxy Fold media events in China

  • Instead of plaudits ahead of the phone’s launch on April 26 in the US, Samsung has instead received brickbats
  • The hashtag #foldgate trended on Twitter because of the smartphone issues

SEOUL: Smartphone maker Samsung postponed media events for its Galaxy Fold planned for this week in Hong Kong and Shanghai, a company official said, days after reviewers of the foldable handset reported defective samples.
The official did not elaborate on reasons or rescheduling.
Instead of plaudits ahead of the phone’s launch on April 26 in the United States, the South Korean conglomerate has been blighted by technology journalists reporting breaks, bulges and blinking screens after using their samples for as little as a day.
Samsung said it received “a few” reports of damage to the displays of samples of the $1,980 handset, raising the specter of the combustible Galaxy Note 7 three years ago which the firm ultimately pulled from shelves at massive cost.
The reviewers’ reports of broken screens went viral online and prompted the creation of hashtag #foldgate on Twitter.
Samsung has hailed the folding design as the future in a field that has seen few surprises since Apple’s iPhone in 2007. Chinese rival Huawei Technologies has also announced a folding handset, the Mate X.
The Samsung official on Monday said it had no change to its previously announced release date in the United States.
It plans to begin South Korean and European sales in May, and Chinese sales from an undisclosed date.