• 6 minutes Can the World Survive without Saudi Oil?
  • 10 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 15 minutes Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 2 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 1 hour Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 4 hours WTI @ $75.75, headed for $64 - 67
  • 9 hours How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 9 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 12 hours EU to Splash Billions on Battery Factories
  • 34 mins U.S. - Saudi Arabia: President Trump Says Saudi Arabia's King Wouldn't Survive "Two Weeks" Without U.S. Backing
  • 9 hours China Thirsty for Canadian Crude
  • 12 hours Iranian Sanctions - What Are The Facts?
  • 14 hours Dow logs 830-point loss
  • 11 hours Two Koreas: U.N. Command Wrap Up First Talks On Disarming Border
  • 10 hours Shell, partners approve huge $31 billion LNG Canada project. How long till Canadian Federal government Environmentalates it into the ground?
  • 11 hours Threat: Iran warns U.S, Israel to expect a 'devastating' revenge
Alt Text

US Demands For More Oil Could Backfire

The State Department’s request for…

Alt Text

Hurricane Michael’s Impact On Gasoline Demand

Hurricane Michael had a significant…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Trending Discussions

Saudi Aramco Looks To Double Refining Capacity

Refinery

Saudi oil giant Aramco will be heavily investing in increasing its refining capacity and chemicals business in pursuit of securing more downstream markets for its crude oil, Aramco’s Senior vice president of Downstream, Abdulaziz Al-Judaimi, told Reuters in an interview published on Tuesday.

Aramco, which produces around 10 million bpd of crude oil, aims to increase its refining capacity from 5 million bpd now to 8 million bpd-10 million bpd, and to double its petrochemicals production by 2030, Al-Judaimi said.

“Our strategy is very simple. We want to be at 8 to 10 million barrels per day of participated (refining) capacity ... (and) we are going forward by trying to be a top leader in chemicals by 2040,” the manager told Reuters.

The chemicals business is Aramco’s key strategy for the decades to come to diversify the risk of a slowdown in oil demand.

The Saudi energy giant is looking to its home the Middle East and to Asian markets to boost its refining and petrochemicals production capacities.

Aramco has recently announced an initial agreement to build a mega refinery and petrochemicals complex on India’s west coast with a consortium of Indian oil companies. The mega project, estimated to cost US$44 billion, is planned to have a huge refinery capable of processing 1.2 million bpd of crude oil.

Aramco also has a project in Malaysia with the national oil firm Petronas for the Refinery and Petrochemical Integrated Development (RAPID) project slated for the 300,000-bpd refinery start-up in Q1 2019.

The Saudi oil firm is also boosting its refinery capacity in one of its single biggest crude oil customers—China, where it is in talks with CNPC to finalize the acquisition of a stake in the operational Yunnan refinery, and is also talking to other potential refiners for stakes, Al-Judaimi told Reuters. Related: Can Saudi Arabia Prevent The Next Oil Shock?

“Asia has to have the lion’s share ... We believe markets east of the Suez Canal will continue to grow, including the Middle East as well,” the manager said.

For the domestic market, Aramco signed in April a memorandum of understanding with France’s oil major Total to build a giant petrochemical complex in Jubail, which will see total investments of US$9 billion by the two companies and third-party investors.

Saudi Aramco and Saudi Basic Industries Corp (SABIC) also plan to develop a fully integrated crude oil to chemicals (COTC) complex, with Aramco planning to make a final investment decision on the project by the end of next year, Al-Judaimi told Reuters.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News