Aramco vows to expand investment in China, eyeing three strategic sectors

21st Century Business Herald exclusive written interview with Aramco Asia President Saleh Y. Al Zaid

Reporter: Zheng Qingting

In a recent written interview with 21st Century Business Herald, Saleh Y. Al Zaid, President of Aramco Asia, revealed that the company is currently investing in projects in China that have a collective and total value of over 240 billion yuan, with Aramco’s share at over 90 billion yuan.

He emphasized that Aramco planned to further expand its investment footprint in China, mainly focusing on three priority areas: advanced petrochemicals, new energy and low-carbon technologies, and advanced materials, underscoring its long-term commitment “for the next 50 years and beyond.”

In September this year, Al Zaid won the 2025 Chinese Government Friendship Award, the highest national honor for international experts who have made outstanding contributions to China’s economic and social development. 

He noted that the award not only recognized his efforts but also affirmed the deep cooperation and strategic alignment between Aramco and Chinese partners over the years. “The award comes at a critical time as China-Saudi relations have entered a period of fast and positive growth,” he said.

In recent years, Aramco has strengthened its refining and petrochemical presence in China through equity stakes and joint ventures, making large-scale investments in the petrochemical sector. 

Al Zaid noted that integrated refining and petrochemical projects allowed Aramco and its Chinese partners to harness complementary strengths. By leveraging its expertise in energy supply, value chain integration, and low-carbon technologies, Aramco supported China in enhancing energy security while striking a balance between economic growth and climate objectives. 

Since establishing its Asia headquarters in Beijing in 2012, Aramco has advanced major projects across multiple regions in China, spanning energy, chemicals, and cutting-edge technologies. 

Looking ahead, Al Zaid stressed that the company will focus on three key areas over the next three years: advanced petrochemical industries, such as the Fujian integrated refining and petrochemical project; new energy and low-carbon solutions, including hydrogen and carbon capture, utilization and storage (CCUS); and technology-driven industrial innovation and advanced materials.

To date, Aramco has set up nine joint ventures in China and launched a venture capital fund worth approximately 55 billion yuan, investing in several Chinese start-ups. Al Zaid praised China’s innovation ecosystem, citing its strengths in policy support, market scale, talent pool, and technology commercialization, attributes that align closely with Aramco’s corporate strategy to drive innovation and sustainability.

Aramco, the national oil company of Saudi Arabia, is among the world’s largest oil producers, with operations spanning the entire oil and gas value chain. Ranked fourth on the 2025 Fortune Global 500 list, the company reported revenues of about $480.19 billion and manages assets including the world’s largest onshore oil field, Ghawar, and the largest offshore oil field, Safaniya. 

What personal significance does receiving the Chinese Government Friendship Award hold for you, and what does it represent for Aramco as a company? In your view, how does this honor reflect Aramco’s contribution to China’s economic and social development, particularly in the context of the growing China-Saudi Arabia relations?

This award represents the highest national recognition conferred by the Chinese government to international experts who have made outstanding contributions to China’s economic and social development.

Winning the award underscores Aramco’s deepening presence in China through strategic investments, industrial cooperation, and community engagement. The award comes at a critical time as China-Saudi relations have entered a period of fast and positive growth. 

For Aramco as a company, this honor carries extraordinary significance that it validates our long-standing strategic commitment to China’s development. Since our first crude oil shipment to China in 1991, we have strived to be more than an energy supplier. We sought to be a deeply rooted partner. 

The award reflects the recognition of our role in enhancing energy security, driving industrial innovation, and supporting sustainable growth. This honor also underscores our "Invest in China, Trust in China" strategy is not just a slogan, but a mission we deliver on daily.

This recognition also vividly mirrors our contributions to China’s economic and social development. As China and Saudi Arabia elevate cooperation to new heights, we are deepening collaboration in high-value downstream sectors as seen in the recent establishment of a new joint venture, Fujian Sinopec Aramco Refining and Petrochemical Co., Ltd., to develop a large-scale integrated refining and petrochemical complex in Fujian province, China. 

Looking ahead, this award will only strengthen our resolve. As Aramco’s CEO Amin Nasser noted, our commitment to China extends "not just for the next 50 years, but far beyond”. We will continue to stand with China in safeguarding industrial supply chains, innovating for a low-carbon future, and nurturing the friendship between our two peoples — proving that this award is not just a recognition of the past, but a promise for the future.

Since establishing its Asia headquarters in Beijing in 2012, Aramco has significantly expanded its footprint in China. Could you outline the core focus and key sectors of Aramco’s investment strategy in China? What role does China play in Aramco’s global energy strategy?

Aramco is currently investing in projects in China that have a collective and total value over 240 billion yuan (US$34bn), with Aramco’s share at over 90 billion yuan (US$13bn). And we hope to expand this as we see a number of opportunities that offer great potential.

We see five key areas where win-win investment and cooperation are expected to be enormous, through our consistently working with our Chinese partners.

First, chemicals. China is already a powerhouse representing 40% of global sales, and Aramco has developed a formidable position as well. We plan to increase liquid-to-chemicals throughput to four million barrels per day by 2030.

Second, demand for lower greenhouse gas emissions materials – especially advanced composites and non-metallics in general – is growing rapidly. Our NEXCEL center of excellence for non-metallic technologies is right here in Beijing. NEXCEL carries outstanding research on less greenhouse gas intensive materials to complement more intensive conventional materials, especially in construction and buildings.

Third, we agree with China’s pragmatic and prudent approach to energy transition. There are wide-ranging opportunities to jointly develop advanced GHG emission reduction technologies. This would help to protect the environment and create new industrial value chains with global impact.

Fourth, lower carbon energy is clearly an area of global importance, including the climate ambitions of both our nations. China has distinct strengths in renewables and critical materials, while Aramco and Saudi Arabia have a clear interest in solar, wind, hydrogen, and electro fuels.

The fifth area covers multiple domains. We both have major ambitions in digital technologies, and Fourth Industrial Revolution (4IR) technologies in general. Another strategic area for collaboration is venture capital. We have more than doubled the funding for our venture capital arm, with a focus on industrial innovation, disruptive technologies, and sustainability.

Aramco currently has nine joint ventures in China. Looking ahead over the next three years, which industries or emerging sectors does the company plan to prioritize for expansion? What are the most important criteria you consider when evaluating new partnership opportunities?

Aramco’s strategic roadmap for China over the next three years is anchored in deepening its presence across high-impact sectors that align with both China’s national development priorities and Saudi Arabia’s Vision 2030. As we move forward, our focus will be on three core areas: advanced petrochemicals, low-carbon energy solutions, and technology-driven industrial innovation.

First, petrochemicals remain a cornerstone of our downstream expansion. With China’s demand for high-performance materials, such as synthetic fibers, engineering plastics, and specialty chemicals, expected to surge, we are actively investing in integrated refining and petrochemical complexes.

The recently announced Fujian Sinopec Aramco Refining and Petrochemical Co., Ltd. The joint venture will oversee construction and operation of an integrated refining and petrochemical complex that will include a 16 million tons-per-year crude oil refining unit (equivalent to 320,000 barrels per day); a 1.5 million tons-per-year ethylene unit; a paraxylene and downstream derivatives capacity of 2 million tons-per-year; and a 300,000 tons capacity crude oil terminal. 

Second, we are prioritizing low-carbon and renewable energy technologies, including hydrogen, carbon capture and storage (CCS), and circular economy solutions. These areas are critical to supporting China’s dual carbon goals and energy transition. 

Third, we see significant potential in advanced materials, particularly those supporting China’s strategic sectors such as aerospace, automotive, and clean energy. We are exploring partnerships with entities like China Building Materials Academy (CBMA) to explore new opportunities in advanced materials and industrial development. 

China is already the world’s largest consumer and producer of petrochemicals, accounting for nearly half of global demand. And it is becoming a major hub for the entire chemicals industry value chain.

We are proactively exploring high-quality integrated refining and petrochemical opportunities in China based on economic fitness, feasibility, project scale, reliability, capability of the partners and other strategic fitness metrics that were identified by Aramco. We are mainly targeting high liquid-to-chemical conversion assets with high crude placement.  

Aramco has launched a venture capital fund of approximately 55 billion RMB and invested in several Chinese startups. What was the strategic motivation behind establishing this fund? How are these investments progressing, and how would you characterize the vitality and distinctive strengths of China’s innovation ecosystem?

Innovation is key to addressing some of the fundamental challenges facing the world today, including the energy transition. Through Aramco Ventures, we aim to support pioneers with big ambitions and ultimately help bring their ideas to life.

The venture fund continues to invest in disruptive technologies outside the energy sector and late-stage larger-ticket ventures in the sustainability and digital domains in an effort to build a portfolio of start-up companies and minority equity holdings in significant high-growth technology companies to support Aramco’s diversification and competitiveness. 

We intend to provide the financial backing required to take game-changing solutions to the next level. Examples of the new solutions that Aramco believes could positively impact on its business sustainability, and which are being actively pursued, include: 
• Directly converting liquids to chemicals; 
• Producing hydrogen from hydrocarbons while capturing and storing associated emissions; 
• Expanding nonmetallic applications; 
• Accelerating large-scale deployment of carbon capture and storage; 
• Enabling sustainable transport through more efficient engines and lower-carbon fuels; accelerating technology-based offsetting solutions, such as direct air capture. 

Strategic initiatives such as “Made in China 2025” and the emphasis on high-quality development provide a clear framework for innovation. 

China’s vast domestic market enables rapid scaling and commercialization of new technologies. China is already home to most of the world’s manufacturing capacity for both solar photovoltaic cells and lithium-ion batteries – at around 80% and 70%, respectively. Roughly seven out of every 10 electric vehicles sold globally today are now manufactured here.

One of China’s most distinctive strengths lies in its ability to swiftly embed innovations into industrial supply chains. Aramco echoes this approach in its own strategy by “building more resilient local supply and value chains by nurturing commercial ecosystems,” as outlined in its official innovation ecosystem framework. This integration accelerates the commercialization of new technologies and enhances the agility of industrial transformation.

In recent years, Aramco has actively invested in integrated refining and chemical projects across China. From your perspective, in which areas do Aramco and Chinese refining and chemical enterprises complement each other? How does this collaboration foster mutual benefit and create win-win outcomes?

The integration of Aramco’s refining and chemicals manufacturing assets provides an opportunity to capture additional value and continue the shift of its product portfolio to improve the balance of fuels and chemicals production.

First, China’s rising energy needs and the challenging environment underline the strategic case for a more resilient energy system. Stronger ties with the world’s largest oil exporter would enhance China’s energy security, as we maintain our Maximum Sustainable Capacity (MSC) at 12 million barrels per day (MMBD) to provide increased flexibility, as well as an opportunity to focus on increasing gas production and growing our liquids-to-chemicals business. 

Second, we aspire to invest in China’s future economic growth by building a large, integrated downstream business across the country with our Chinese partners. Everything from reliable supplies of oil and natural gas liquids to refining, marketing, petrochemicals, and lubricants. 

Third, Aramco already has one of the lowest upstream footprints in the world. And, fueled by our well-known net-zero ambitions, we are dedicated to being one of China’s lowest carbon intensity suppliers of energy far into the future, leveraging ever more advanced technologies like carbon capture, utilization, and storage; hydrogen; and Direct Air Capture technology, while adopting the circular carbon economy framework.

Moreover, they also unlock new opportunities in this crucial market and advance our downstream objectives, contribute to both China’s and Saudi Arabia’s vibrant energy and petrochemicals sectors, and help develop future technology solutions.

In other words, a long-term partnership with Aramco would help China meet its energy security, economic development, and climate change mitigation goals simultaneously.

China recently announced its quantified emission reduction targets for 2035. What strategic initiatives is Aramco pursuing to promote the integrated development of traditional energy and low-carbon technologies? How will the company leverage its resources and expertise to support China’s high-quality development and its “Dual Carbon” goals?

We recognize the scale and urgency of the climate challenge. We are leveraging our operational strengths and our business portfolio to play our part in the energy transition, underpinned by our ambition to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across our wholly owned operated assets by 2050 and our development of lower-carbon energy solutions. This aligns with the Saudi Arabia’s aim to reach net-zero emissions by 2060.
 
To achieve meaningful reductions in greenhouse gas (GHG) emissions by 2035, we are focusing on five strategic levers across our upstream and downstream operations: enhanced energy efficiency, further reductions in methane emissions and flaring, increased integration of renewable energy, large-scale carbon capture and storage (CCS), and the development or acquisition of high-quality carbon offsets to address hard-to-abate emissions.

One notable example of our energy efficiency efforts is the deployment of large-scale cogeneration facilities, which delivered 5.3 gigawatts of utility-scale power in 2023. These systems are significantly more efficient than conventional power and steam generation technologies.

In terms of methane and flaring reduction, Aramco remains among the industry’s best performers, maintaining a methane intensity of just 0.05%, which is well below the Oil and Gas Climate Initiative’s 2025 target of 0.2%. Routine flaring has been nearly eliminated, with captured flare gas redirected into the Master Gas System, which was established in 1975, to produce sales gas for power generation and industrial use.

On the renewables front, Aramco is contributing to Saudi Arabia’s national target of 12 gigawatts of solar and wind capacity, supporting the Kingdom’s broader energy transition.

In CCS, we are advancing the development of one of the world’s largest carbon capture hubs, with a planned capacity of 9 million metric tons of carbon dioxide equivalent per year by 2027, in collaboration with global partners. 

The fifth and complementary lever is carbon offsets. Aramco has already planted 24 million mangrove trees and plans to increase this to 300 million by 2035. These efforts are supported by the purchase of high-quality offsets through the newly established regional voluntary carbon market in Saudi Arabia.