Saudi Aramco and China National Building Material Group announce strategic collaboration

Saudi Aramco and China National Building Material Group announced a strategic collaboration. Supplied
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  • Plans include establishing manufacturing facilities in Saudi Arabia for hydrogen storage tanks, lower-carbon building materials, and energy storage solutions
  • Key areas of collaboration will include the creation of a new center for training, inspection, and accreditation

RIYADH: Saudi oil giant Aramco has signed a five-year partnership with China National Building Material Group to explore advanced materials, including the potential manufacturing of wind turbine blades in the Kingdom. 

The cooperation framework agreement will also address industrial development, with plans to establish manufacturing facilities in Saudi Arabia for hydrogen storage tanks, lower-carbon building materials, and energy storage solutions, according to a company statement. 

The deal builds on Aramco’s existing partnership with CNBM, following the 2021 launch of the Nonmetallic Excellence and Innovation Center in Beijing. It continues Aramco’s longstanding three-decade partnership with China, emphasizing future growth and innovation. 

Aramco Executive Vice President of Technical Services Wail Al-Jaafari said: “We look forward to expanding our efforts with CNBM as we pursue new breakthroughs in materials science that have the potential to deliver tangible benefits for the building sector and beyond.” 

He said Aramco aims to drive the transition of materials by developing solutions to reduce construction emissions and enhance product performance. 

“By combining Aramco’s expertise in nonmetallic materials and CNBM’s industry know-how, we aim to identify groundbreaking advances and new business opportunities, as well as promote further development of manufacturing capabilities within the Kingdom of Saudi Arabia,” added Al-Jaafari. 

Key areas of collaboration will include the creation of a new center for training, inspection, and accreditation, along with a joint technology development center and laboratory to foster innovation. 

“CNBM is seeking to promote a low-carbon transition through the nonmetallic materials industry. By leveraging our work in low-carbon integrated solutions, CNBM aims to complement Aramco’s efforts to advance the materials transition,” said Zhou Yuxian, chairman of CNBM. 

“This agreement envisages a wide range of cooperation that has potential to positively contribute to low-carbon development, while supporting further strategic alignment between China and the Kingdom of Saudi Arabia,” he added. 

The deal also supports Aramco’s strategic objectives to enhance China’s long-term energy security and achieve emissions reduction goals. This includes plans to expand oil production capacity by 1 million barrels per day to 13 million barrels per day by 2027 and increase gas production by over 50 percent by 2030. 

Earlier this month, Aramco announced additional agreements with Chinese partners Rongsheng Petrochemical Co. and Hengli Group Co. during a visit by Chinese Premier Li Qiang to the Kingdom.