UPDATE 1-China refiners agree 12 pct rise in 2010 Saudi imports

* Domestic oil demand set to grow as China's economy recovers

* Chinese oil companies agree to buy 1.04 mln bpd for 2010 (adds quote, demand background)

BEIJING/SINGAPORE, Nov 20 - Chinese oil companies have agreed to buy a total of about 1.04 million barrels per day crude from Saudi Arabia under a term pact finalised for 2010, roughly 12 percent above the 2009 contract level, traders told Reuters.

The pace of growth quickens from a rate of under 10 percent seen in this year over 2008, as demand in the world's No.2 oil consumer looks poised to recover more on back of China's solid economic expansions.

"The contract volume was finalised and everything is set," said a trading source familiar with the term agreement between the world's top exporter and number-two consumer.

The 2010 amount includes about 200,000 barrels per day of supplies to Fujian Refining & PetroChemical Co Ltd (FREP), which is 25 percent owned by state-run Saudi Aramco and is expected to run at top rates after start-up earlier this year.

The agreed target of above 1 million bpd comes after Wang Tianpu, president of top refiner Sinopec Corp <0386.HK>, told Reuters last week that China's refined fuel consumption would likely grow at 8 percent next year versus this year's 3 percent.

It will mark a significant increase of about a quarter above actual supplies from Saudi Arabia in the first nine months of this year as reported by Chinese customs, as a result of the Organisation of Petroleum Exporting Countries production cuts. [O/CHINA1] (Reporting by Chen Aizhu in Beijing and Judy Hua in Singapore; Editing by Chris Lewis)