Saudi Aramco to Prioritize Energy Supply to China for 50 Years, Says CEO

Saudi Aramco will ensure China’s energy security remains its highest priority for the next 50 years and beyond. (Reuters)
Saudi Aramco will ensure China’s energy security remains its highest priority for the next 50 years and beyond. (Reuters)
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Saudi Aramco to Prioritize Energy Supply to China for 50 Years, Says CEO

Saudi Aramco will ensure China’s energy security remains its highest priority for the next 50 years and beyond. (Reuters)
Saudi Aramco will ensure China’s energy security remains its highest priority for the next 50 years and beyond. (Reuters)

Saudi Aramco will ensure China’s energy security remains its highest priority for the next 50 years and beyond as new and existing energy sources run in parallel for some time, CEO Amin Nasser told the China Development Forum on Sunday.

Saudi Arabia, the world’s biggest oil exporter, retained its position as China’s top supplier in the first two months this year, with volumes up 2.1% to 1.86 million barrels per day (bpd), China customs data showed on Saturday.

The Kingdom beat Russia to keep its ranking as China’s top crude supplier in 2020 despite unprecedented production cuts in a pact between the Organization of the Petroleum Exporting Countries and its allies to balance global markets after demand plunged during the COVID-19 pandemic.

“Ensuring the continuing security of China’s energy needs remains our highest priority – not just for the next five years but for the next 50 and beyond,” Nasser said in a video speech.

“We appreciate that sustainable energy solutions are crucial to a faster and smoother global energy transition ... But, realistically, this will take some time since there are few alternatives to oil in many areas.”

Nasser told an earnings call earlier on Sunday that Chinese demand was very close to pre-pandemic levels while Asia, East Asia in particular, had seen a strong pickup.

Besides being a top supplier of China’s energy needs, Nasser said Aramco is also well-placed to help China achieve its second centennial goal in energy transition.

Chinese President Xi Jinping announced in September that China will bring its carbon emissions to a peak before 2030 and reach carbon neutrality by 2060, a pledge that is expected to create a tectonic shift in its energy and manufacturing sectors.

The state oil giant also expects opportunities for further investment in downstream projects to help to meet China’s needs for heavy transport and chemicals, as well as lubricants and non-metallic materials, Nasser said.

He added that Aramco is working with Chinese universities and companies in cleaner engine fuel systems and technologies to convert crude to chemicals and to reduce greenhouse gas emissions from existing energy sources.

“In fact, we have even bolder ambitions to expand and intensify our research collaboration with China,” Nasser said, adding that additional collaboration is likely on so-called blue hydrogen, ammonia and carbon-capture technologies among others.

Experts from China National Petroleum Corp’s (CNPC) research institute have forecast that China’s oil demand will be capped at 730 million tons by around 2025 under Xi’s climate pledge.



Positive Outlook for Saudi Stock Market Next Week

A trader monitors the screen at the Saudi Exchange in Riyadh. (AFP)
A trader monitors the screen at the Saudi Exchange in Riyadh. (AFP)
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Positive Outlook for Saudi Stock Market Next Week

A trader monitors the screen at the Saudi Exchange in Riyadh. (AFP)
A trader monitors the screen at the Saudi Exchange in Riyadh. (AFP)

Saudi Arabia’s Tadawul All Share Index (TASI) ended the second week of March with a slight decline for the third consecutive week, closing down 0.73% at 11,725.88 points, compared to the previous week's close of 11,811.11 points.

In an analysis of the market performance during the week ending March 13, Dr. Suleiman Al-Humaid Al-Khalidi, a financial market analyst, told Asharq Al-Awsat that the market experienced a sharp decline not seen in years, coinciding with a drop in global markets, particularly in the US, where $2 trillion in value was wiped out in a single day.

This accounted for roughly 60% of the total market value of the Saudi stock market.

Al-Khalidi noted that the key player in the Saudi market is the banking sector, especially Al-Rajhi Bank's shares, which showed resilience and did not follow the downward trend. This was attributed to the strong profits reported by the banking sector in 2024.

The primary factors contributing to the market’s decline include global economic pressures, particularly US tariffs on most global economies, ongoing global uncertainty, and the Federal Reserve's tight monetary policies, he explained.

These factors have significantly impacted liquidity flows into financial markets. Additionally, fluctuations in global oil prices, despite recent stability, have also played a role.

This downturn has been accompanied by caution among sovereign wealth funds, investment institutions, and some portfolios in injecting new liquidity or altering their positions until there is more clarity in the financial markets, he went on to say.

Moreover, Al-Khalidi said that the Saudi stock market has not accurately reflected the true strength and size of the Saudi economy, which has grown to SAR 4 trillion, up from SAR 600 billion in 2016, before the launch of Vision 2030.

Additionally, the country’s GDP has reached approximately $1.1 trillion.

Looking ahead to the market's performance in the coming week, he noted that there are strong support levels at 11,550 points, followed by 11,450 points.

These levels could help shift the market toward an upward trajectory and better reflect the robust growth of the Saudi economy.

Al-Khalidi emphasized that the banking and energy sectors could play a leading role in driving the market higher, pushing the index beyond this week’s closing levels.

He also pointed out that some stocks are hitting new lows, presenting significant investment opportunities for those seeking safe havens with steady returns in the Saudi market.