Saudi, Chinese energy leaders pledge further cooperation
While the United States is upset at Saudi Arabia over its decision to decrease oil production, the kingdom’s energy ties with China are improving.
Saudi Arabia and China are looking to boost cooperation in the energy sector.
Saudi Energy Minister Prince Abdulaziz bin Salman bin Abdulaziz held a virtual meeting Friday with China’s National Energy Administrator Zhang Jianhua. The two pledged to work together to promote bilateral energy cooperation. They specifically mentioned investment in the countries that are part of China’s Belt and Road infrastructure initiative and the importance of “stabilizing” the global oil market. They also discussed renewable energy, including clean hydrogen, the official Saudi Press Agency reported.
Why it matters: Saudi Arabia and China’s energy ties are strengthening at a time when US-Saudi relations are souring over oil. In March, Saudi Aramco finalized a deal to build an oil refinery complex in China. In August, Aramco and China’s Sinopec signed a memorandum to further cooperation regarding oil, hydrogen and carbon capture.
Know more: Abdulaziz Jianhua’s discussion touched on some important points. Saudi Arabia supported the recent OPEC+ oil production cut decision in part because of their concern regarding oil price fluctuations this year. China, on the other hand, would presumably benefit from lower oil prices, since it imports oil from the kingdom.
