State-owned Aramco in Saudi Arabia and China Petroleum & Chemical Corporation (Sinopec) are joining forces to jointly develop hydrogen and carbon capture.
The two sides signed a memorandum of understanding (MoU) last Thursday with the intent of working together on various oil industry matters, as well as on the development of carbon capture and hydrogen as an energy source.
Saudi’s Aramco and the Chinese oil giant Sinopec have agreed to collaborate on projects on the territory of Saudi Arabia, including a future project in the King Salman Energy Park in the east of the country.
For this location in particular, as pointed out by Aramco in an official statement, both sides are planning to build a manufacturing hub.
This recent partnership is the continuation of a rather close relationship between the two nations that has been established over the last few years and is predominantly based on energy.
For instance, in March 2022, Aramco closed a deal that will see the construction of a new large-scale refinery in China.
Furthermore, both countries are considering pricing their oil deals in Chinese yuan as opposed to the US dollar.
Energy aside, China and Saudi Arabia have also signed agreements relating to industries not related to oil or hydrogen, such as, for example, the recent collaboration with Huawei that has to do with training Saudi in information technology.
In addition, China happens to be Saudi Arabia’s top partner, both for import as well as for export in non-oil trade, as per the latest data released by the Saudi government.