China ready to strengthen oil ties with GCC

China is willing to deepen cooperation with Gulf countries along the oil and gas industry chain, and open new avenues of collaboration in the renewable energy sector, including electric batteries and photovoltaic installations , officials and executives said Friday.

By deepening their collaboration, the two regions can leverage their complementary strengths and expertise to ensure a stable and diversified energy supply and promote sustainable development, they said at the China-GCC Countries Forum on Industrial Cooperation and in investment, which started in Xiamen. , Fujian province, Thursday.

In a complex and ever-changing international landscape and energy market dynamics, China and the Gulf Cooperation Council countries face significant challenges in ensuring energy security and realizing the energy transition, Dong said Xiang, deputy director general of the international cooperation department of the National Energy Administration. .

Headquartered in Riyadh, Saudi Arabia, the GCC is a political and economic union of six Arab states – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates – which border the Persian Gulf. Some of them are among the world’s largest exporters of fossil fuels.

Energy cooperation is a crucial part of pragmatic collaboration between China and GCC countries, given the GCC countries’ abundant energy resources and China’s position as a major global energy consumer, Dong said .

In 2023, China imported about 201 million tons of crude oil and 18 million tons of liquefied natural gas from GCC countries, accounting for about a third and a quarter of its total imports, respectively, according to administration data.

Despite the volatile and uncertain nature of the global energy market in the near future, oil and gas will continue to play a crucial role as the main sources of global energy supply, said Zhang Pinxian, deputy director of the Department of development and planning of the National Office of China. Oil company

In response to this scenario, the company will expand oil and gas cooperation with Gulf countries beyond exploration and development in areas such as trade, engineering technology and project construction, to to strengthen the resilience and security of the oil and gas supply chain, Zhang added.

So far, the company has been involved in the development of oil and gas fields in countries such as the United Arab Emirates, Qatar and Oman, with participation in six oil and gas cooperation projects.

Energy cooperation between China and countries in the Gulf region extends far beyond traditional fossil fuels. As China and GCC states continue to prioritize green transition, the two sides are exploring avenues of collaboration in the field of renewable energy, said Yuan Feng, director of the International Cooperation Center of the National Commission on Energy. development and reform.

As a leader in green energy, China has focused on perfecting its industrial and supply chain to support the advancement of renewable energy technologies. Additionally, the country’s large-scale production has helped lower the costs of renewable energy technologies, making them more accessible and affordable for countries around the world, Yuan said.

At the same time, GCC member countries have unveiled their development strategies, with a strong emphasis on diversifying their economic structures and reducing their over-dependence on traditional energy sources.

GCC countries are committed to fostering the development of new energy sources, including solar power, wind power, electric vehicles and hydrogen, in their effort to achieve sustainable and resilient economies, said Mr. Yuan, stressing that China’s prowess would facilitate the Gulf countries’ transition to a smooth transition. energetic transition.

Saudi Arabia, renowned for its mature energy and petrochemical industries, is actively pursuing a transition in the energy and industrial sectors. As the state embarks on this transformational journey, it aims to create lucrative investment opportunities for investors around the world, especially those from China, said Khalid A. Al-Falih, Minister of investment from Saudi Arabia.

Huang Mingang, chief economist of China National Nuclear Corp, said China leverages its comprehensive nuclear industry supply chain and technical service capabilities to provide Arab countries with integrated nuclear power solutions and services. complete life cycle.

Together, they aim to explore collaborations to combine nuclear energy with heating systems, desalination processes, petrochemical industries and complementary renewable energy sources, Huang added.