China to buy oil infrastructure from Saudi Arabia for $3.8 billion
China has purchased a $3 billion pipeline from Saudi Arabian oil giant Aramco to build its oil infrastructure in the Gulf region.
The deal was announced Monday by the Chinese State Council, which oversees the energy industry.
It comes as the United Arab Emirates (UAE) and Russia seek to open up a pipeline network to supply Qatar with liquefied natural gas (LNG) and natural gas liquids (NGLs).
Saudi Arabia, the world’s largest exporter of LNG, is the world leader in LNG exports, having signed an agreement to build the pipeline in 2018.
The Saudi-owned Saudi Aramco is the owner of Aramco Total SA, the largest producer of crude oil in the world.
Saudi Arabia has a vast gas and oil reserves, but it has struggled to develop new gas fields in the wake of the devastating 2009-10 Gulf War.
The country is currently grappling with the threat of a potential global recession and oil prices.