Page 9 - AsianOil Week 12 2021

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China’s green ambitions

attract Aramco

The Chinese government’s crude oil consumption and carbon emission
projections have driven the Saudi oil giant to seek a wider set of opportunities

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

Week 12 25•March•2021 www. NEWSBASE .com P9