Saudi Aramco agrees $10bn refinery deal with China

State-owned oil company Saudi Aramco signed a $10 billion deal to build a refining and petrochemical complex in China on Friday, as Saudi Crown Prince Mohammed bin Salman wrapped up a two-day trip to Beijing.

Saudi Aramco will partner with China North Industries Group Corp., known as Norinco, and Panjin Sincen to form a company -- Huajin Aramco Petrochemical Co. Ltd., it said in an emailed statement. The project will include a 300,000 barrels a day refinery, an ethylene cracker, and a paraxylene unit.

Aramco will supply up to 70 percent of the crude feedstock for the complex, which is expected to start operations in 2024.

The Saudi delegation, including top executives from Aramco, arrived on Thursday on an Asia tour that has already seen the kingdom pledged investment of $20 billion in Pakistan and seek to make additional investments in India's refining industry.

The crown prince will meet President Xi Jinping, who has made stepping up China's presence in the Middle East a key foreign policy objective, despite its traditional low-key role there.

The investments could help Saudi Arabia regain its place as the top oil exporter to China, a position Russia has held for the last three years. Saudi Aramco is set to boost market share by signing supply deals with non-state Chinese refiners.

China sees "enormous potential" in Saudi Arabia's economy and wants more high-tech cooperation, State Councillor Wang Yi, the Chinese government's top diplomat, said on Thursday.

Meeting Saudi Foreign Minister Adel al-Jubeir, Wang said the main features of their ties were respect, understanding, and support for each other, China's Foreign Ministry said in a statement late on Thursday.

"All countries in the world have the right to develop, and Saudi Arabia is an emerging market country with enormous potential," the ministry paraphrased Wang as saying.

China supports Saudi Arabia's efforts to diversify its economy and is willing to strengthen high-tech cooperation, Wang added.