Strategic Energy Agreements Signed Between China, Saudi Arabia

Saudi Arabia and China have signed some critically strategic energy deals during the visit of Chinese Premier, Wen Jiabao, to the oil producing giant amid escalating tensions over possible disruptions by Iran for the oil supplies through the Strait of Hormuz. SPA, the Saudi state news agency has said that the Chinese Premier met King Abdullah, adding that both the leaders had discussed issues of mutual interest like regional and international development and prospects for further mutual cooperation.

According to Xinhua, the Chinese state news agency, currently Saudi Arabia is the largest oil supplier to the thriving and energy hungry economy of China, and in the first 11 months of last year bilateral trade between the two countries reached $58.5 billion. SPA reported that the two nations signed many agreements on economy and culture that also includes a Memorandum of Understanding between Sinopec of China and Sabic, the Saudi petrochemical giant for the building of a petrochemical plant in Tianjin. It added that they had also signed an agreement of cooperation for the use of nuclear energy for peaceful purposes.

However, it did not elaborate it further.

SPA reported that Mr. Wen on Saturday held a meeting with the Crown prince, Nayef bin Abdul Aziz, the interior minister of Saudi Arabia. A statement by OIC said that the Chinese premier also held talks with the head of the Organization of Islamic Countries, Ekemeleddin Ihsanoglu. During the second leg of his Gulf tour, Mr. Wen will be visiting the United Arab Emirates and Qatar. The tour has special importance as it comes at a time when tensions between the West and Iran are escalating.

**********************************************

The Views and Opinions Expressed by the author are his or her opinions only and do not necessarily reflect those of this Web-Site or its agents, affiliates, officers, directors, staff, or contractors. The author at the time of this article did not own any shares or receive any consideration financial or otherwise from any company or person mentioned or referred to in the article.

Tags: Agreements, China, King Abdullah, Saudi Arabia, Wen Jiabao