7th APRIL 2015 - Vol.XXXVIII No.018
Business News

China push by Aramco

BEIJING: Saudi Aramco plans to supply crude to a refinery in the southwest China, where Beijing is building an oil and gas pipeline that slices through Myanmar.

Aramco Overseas Company, a subsidiary of Saudi Aramco, said it had signed a memorandum of understanding with PetroChina, a subsidiary of China's state-owned oil giant CNPC.

The deal involves the "planned development" of a 10 million metric tonnes per annum refinery in Yunnan, the Chinese province that borders on Myanmar.

"Saudi Aramco will supply the project company with up to 200,000 barrels per day of Arabian crude via a long-term contract," according to an Aramco press release.

The announcement did not say how the oil would be delivered to land-locked Yunnan. But it appears likely the oil could ultimately come through Myanmar. "The deal is not concluded yet. It's an MoU, so we are going to pursue feasibility and study the project," Aramco president and chief executive Khalid Al Falih said.

CNPC is building the China-Myanmar oil and gas pipelines, intended to bring energy supplies overland from the Middle East, via a crude oil port in Myanmar.

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