Saudi Aramco has approved providing 12 million barrels of crude oil to China’s Huajin Chemical Industries Group Corporation based on an annual deal, Reuters reported.
The deal is the second sealed between Aramco and Huajin and will aid Saudi Arabia in boosting its market share in China in its race against Russia.
Aramco’s supply to the Chinese company is increasing in 2018, as Huajin’s oil imports from the Saudi firm recorded between 6 million to 8 million barrels in 2017, according to Mubasher.
In 2017, Russia remained the top crude oil supplier for China for the second consecutive year. In May, Aramco sealed a preliminary deal with China North Industries Group Corporation (Norinco) to establish a refining and petrochemical project in Panjin.
Huajin is a refinery and chemical complex controlled by Chinese defense conglomerate Nornico. The company develops, manufactures, and markets fertilizers, synthesis resins, ethylene, methanol, and dimethyl in China.