Saudi Aramco announced that it has signed a Memorandum of Understanding (MoU) with the Zhejiang Free Trade Zone (FTZ), during a visit by Yuan Jiajun, the Governor of the Chinese province of Zhejiang to Aramco’s headquarters in Dhahran.

The representatives of the Chinese government expressed their support for more investments by Saudi Aramco in Zhejiang’s downstream growth.

The MoU follows a number of agreements that were signed during a visit by Saudi Crown Prince Mohammed Bin Salman to Beijing last February.

Moreover, the deal is set to facilitate Saudi Aramco’s planned acquisition of a 9% stake in the Zhejiang integrated refinery and petrochemicals complex. It will also include a long-term crude oil supply agreement, as well as the ability to utilize crude oil storage facilities to serve Aramco’s customers in Asia.

Aramco says that these activities reflect its strategy to expand its presence in the Chinese energy sector.

Saudi Arabia’s crude oil exports to China soared to its highest level in July at 1.74 million barrels per day (b/d).