ChemChina, Saudi Aramco and the National Industrial Clusters Development Program (NICDP) have signed a memorandum of understanding (MoU) to explore investment opportunities in Saudi Arabia’s energy and chemical sectors. The MoU was signed on Aug. 31 in Beijing, China, during a visit by a high-level delegation from Saudi Arabia, headed by Deputy Crown Prince Mohammed bin Salman.

The agreement sets the stage for NICDP and ChemChina to explore opportunities in renewable energy, including the development of manufacturing plants for the organo-silicone and solar energy photovoltaic chain, specialty chemicals, and tires, by using local raw materials. It also calls for the potential development of other industrial sectors including performance fibers for aerospace and high-tech applications, industrial non-tire rubber, animal feed additives and engineering plastics.

In addition, the deal will explore broad co-operation with Saudi Aramco for the supply of crude and oil products. An assessment will consider the feasibility of using Saudi Aramco’s crude oil grades as feedstock for ChemChina’s refineries through a long-term sales agreement that will start in 2017. The companies will consider swapping oil products from ChemChina’s refineries and subsidiaries with Saudi Aramco and its affiliates.

“The three-party co-operation offers extraordinary potential and provides unique business and strategic opportunities for ChemChina,” said Ren Jianxin, ChemChina’s chairman. Amin Nasser, Saudi Aramco’s president and CEO, said the agreement is a forward step in realizing the Saudi Vision 2030 goals and will lay the groundwork for significant growth in industrial capabilities, expanded employment and enable new and emerging industries in the Kingdom.