Page 4 - MEOG Week 13 2021

MEOG COMMENTARY MEOG

China’s green ambitions

attract Aramco

The Chinese government’s crude oil consumption and carbon emission
projections have driven the Saudi oil giant to widen its net of opportunities.

SAUDI ARAMCO SAUDI Arabia is positioning itself as China’s adapt to fundamental shifts in the global energy
energy partner of the future, building relation- demand profile.
ships that it hopes will create growth opportuni-
WHAT: ties even as Chinese oil demand peaks. Aramco ambitions
Saudi Aramco has Chinese President Xi Jinping announced Aramco CEO Amin Nasser told the China
pledged to ensure in September 2020 that the country aimed to Development Forum on March 21 that China’s
Chinese energy security become carbon neutral by 2060, with emissions energy security would remain his company’s
over the next 50 years. peaking before 2030. highest priority over the next half century.
While his announcement, made while virtu- “Ensuring the continuing security of China’s
WHY: ally attending the UN General Assembly in New energy needs remains our highest priority – not
Aware of the country’s York, was met with some scepticism at the time, just for the next five years but for the next 50 and
energy transition, the the National People’s Congress (NPC) outlined beyond,” Nasser said.
developer wants to tap the country’s emissions reduction commitment “We appreciate that sustainable energy solu-
into old and new energy earlier this month. tions are crucial to a faster and smoother global
investment opportunities. At the end of its week-long annual meeting, energy transition ... But realistically, this will take
the NPC formalised the country’s 14th Five Year some time, since there are few alternatives to oil
WHAT NEXT: Plan (FYP, 2021-2025), which set out an 18% in many areas.”
Aramco is looking beyond reduction target for “CO2 intensity” and 13.5% Nasser said Aramco was also looking for fur-
oil and gas supplies to reduction target for “energy intensity” by 2025. ther downstream investment opportunities in
new opportunities such Understanding the shift in the priorities of order to meet Chinese demand for heavy trans-
as hydrogen. the world’s largest oil and gas importer, state-run port, chemicals, lubricants and non-metallic
Saudi Aramco pledged to meet the Asian giant’s materials. The executive said his company had
energy needs over the next 50 years. teamed up with Chinese universities and com-
While Aramco noted that oil and gas would panies to develop both cleaner engines and low-
continue to play a key role in China’s energy mix er-emissions petrochemical technologies.
over the next half century, it added that it would “In fact, we have even bolder ambitions to
work with Beijing on a range of emission reduc- expand and intensify our research collaboration
tion and clean-energy technologies. with China,” Nasser said. He noted additional
The move is an acknowledgement by the collaboration was also likely on blue hydrogen,
Middle Eastern oil producer that it needs to ammonia and carbon capture technologies.

P4 www. NEWSBASE .com Week 13 31•March•2021