Saudi Arabia’s state oil behemoth Saudi Aramco has suspended a deal to build a $10 billion refining and petrochemicals complex in China’s northeastern province of Liaoning, reports Economic Times.
The refinery was supposed to be built by Aramco in partnership with China North Industries Group Corporation (Norinco) and Panjin Sincen.
However, the fate of the refinery now hangs in the balance as Aramco is planning to cut down spending in a bid to cope with losses being incurred due to the low prices of oil.
The joint venture was signed last year in February when Crown Prince Mohammed bin Salman was on a visit to Beijing.
As per the deal, once the project would come up, Saudi Arabia was going to supply as much as 70% of the crude for the 300,000-barrel-a-day refinery.
Aramco is said to be planning to cut its capital spending in a bid to maintain a $75 billion dividend amid the low crude oil prices and rising debt.