Remarks by Mohammed Y. Al Qahtani, SVP of Downstream at Qingdao Multinationals Summit

Your Excellencies, distinguished guests, ladies and gentlemen, xià wǔ hǎo and good afternoon. 

I would like to thank the Shandong Provincial People’s Government, and its Department of Commerce, for inviting me to address this Summit. 

Today, the world is experiencing strong economic headwinds, great volatility in commodity markets, and global supply chain challenges. Covid and Ukraine have delivered a worldwide double punch. 

But chaotic thinking on vital issues hasn’t helped either.

The ongoing energy crisis, for example, is a direct result of fragile international transition plans which have arbitrarily ignored energy security and affordability for all. The world needs clear-eyed thinking on such issues.  

That’s why we highly admire China’s 14th Five Year Plan for prioritizing energy security and stability, acknowledging its crucial role in economic development. President Xi’s recent observation that “green transition takes time and cannot be achieved overnight” is certainly wise.

And today I’ll offer more clarity on Aramco’s ability to help China (including Shandong Province) achieve some of its most important goals.  

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, especially as we work on increasing our production capacity to 13 million barrels per day.  

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. 

Backed by our world-leading experience of building and operating efficient downstream facilities, and ability to deploy high-tech solutions.

Third, Aramco already has one of the lowest upstream carbon intensity footprints in the world. And, fueled by our well-known net-zero ambitions, we are committed 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.

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

That win-win-win especially applies to Shandong Province, where over a quarter of China’s total refining capacity is based. 

With Aramco support, there’s an incredible opportunity to create a modern, efficient downstream sector in Shandong, with lower emissions, which could provide a wide range of products to the whole nation for decades to come. This includes our special interest in large, integrated downstream projects with high conversion into chemicals. 

In fact, with SABIC joining the Aramco family, and with nearly 3,000 chemical enterprises already in Shandong Province, we could jointly create a chemicals sector to rival any in the world!

And it doesn’t stop there: Saudi Vision 2030 offers major new supply chain opportunities for Shandong companies in the Kingdom.

Ladies and Gentlemen, the impact of an Aramco “one-stop shop” on Shandong would be profound. And it would solidify Shandong’s crucial role in making some of China’s most important goals a reality. 

Thank you, and xiè xie.