China ready to strengthen oil ties with the GCC

China is ready to deepen cooperation with Gulf countries across the entire oil and gas industry chain and open new opportunities for cooperation in the renewable energy sector, including power batteries and photovoltaic facilities, officials and executives said on Friday.

By deepening cooperation, the two regions will be able to benefit from complementary strengths and expertise to ensure stable and diversified energy supplies and promote sustainable development, they said at the ongoing China-GCC Forum on Industrial and Investment Cooperation, which began in Xiamen . in Fujian province on Thursday.

In the complex and constantly changing international landscape and energy market dynamics, both China and the Gulf Cooperation Council countries face serious challenges in ensuring energy security and achieving energy transformation, said Dong Xiang, deputy director general of the international cooperation department of the National Energy Administration.

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

Energy cooperation is a key element of pragmatic cooperation between China and GCC countries, given the abundant energy resources in the GCC countries and China’s position as the world’s top energy consumer, Dong said.

According to the administration’s data, China imported about 201 million tons of crude oil and 18 million tons of liquefied natural gas from GCC countries in 2023, accounting for about one-third and one-quarter of total imports, respectively.

Despite the volatile and uncertain nature of the global energy market, oil and gas will continue to play a key role as the main sources of global energy supplies in the foreseeable future, said Zhang Pinxian, deputy director of the development and planning department of China National Oil Company

In response to this scenario, the company will expand oil and gas cooperation with Gulf countries beyond exploration and development to areas such as trade, engineering technology and project execution to enhance 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 deposits in countries such as the United Arab Emirates, Qatar and Oman, participating in six oil and gas cooperation projects.

Energy cooperation between China and the countries of the Persian Gulf region goes far beyond traditional fossil fuels. As China and GCC countries continue to prioritize the green transition, the two sides are exploring opportunities for cooperation on renewable energy, said Yuan Feng, director of the International Cooperation Center of the National Development and Reform Commission.

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

Meanwhile, GCC member states presented their development strategies, placing a strong emphasis on diversifying economic structures and reducing excessive dependence on traditional energy sources.

GCC countries have committed to harnessing the development of new energy sources, including solar power, wind power, electric vehicles and hydrogen, in a bid to achieve a sustainable and resilient economy, Yuan said, emphasizing that China’s prowess will make it easier for Gulf countries to achieve a smooth energy transition.

Saudi Arabia, known for its mature energy and petrochemical industries, is actively pursuing transformation in both the energy and industrial sectors. The country embarking on this transformational journey aims to create lucrative investment opportunities for investors around the world, especially those from China, said Khalid A. Al-Falih, Saudi Arabia’s minister of investment.

Huang Mingang, chief economist of China National Nuclear Corp, said China is leveraging its comprehensive nuclear industry supply chain and technical services capabilities to provide Arab countries with integrated nuclear energy solutions and full-life-cycle services.

Together, they aim to explore opportunities for cooperation in combining nuclear energy with heating systems, desalination processes, the petrochemical industry and complementary renewable energy sources, Huang added.