Saudi Aramco To Build USD 10 Billion Refinery And Petrochemical Complex In China

Saudi Aramco To Construct A USD 10 Billion Refinery And Petrochemical Complex In China

• Saudi Aramco is all set to construct a refining and petrochemical complex that includes an investment of USD 10 billion in China. The complex is being built to benefit from the country’s rising demand for fuel and chemicals.
• The complex will have an everyday capacity of 300,000 barrels of crude, with Saudi Aramco delivering 201,000 barrels each day.
• The project's completion is scheduled for 2026, and it is an element of a bigger Saudi Aramco strategy for securing long-term oil demand.

In the upcoming three years, Saudi Aramco is all set to construct a USD 10-billion refining and petrochemical complex an everyday capacity of 300,000 crude barrels in China to take benefit of the growing demand for energy in the country.

The project will be implemented as a partnership between Aramco and two Chinese companies. The construction for the project will start in the second half of this year and will likely finish in 2026.

The project is crucial for supporting the growing fuel and chemical product demand across China. It can also be seen as a significant milestone for China's ongoing downstream expansion strategy and also in the wider region, which is a major driving factor for the global petrochemical demand, as per Mohammed Al Qahtani, Aramco’s head of downstream.

This report follows a piece of different news from last December that stated that Aramco made a pact with Sinopec China to construct a refinery and petrochemical cracker in China with a capacity of 320,000 bpd emphasizing the latter’s key role in oil consumption worldwide once again.

Investments in refining and petrochemical were Aramco's priority since it aims to secure an extended demand for its primary product, even as it extends the local refining capacity too.

As per the International Energy Agency, along with other forecasters, betting on petrochemicals is a great long-term gamble in the oil sector amidst anticipations of a drop in demand for oil for transport fuels.

Certainly, the IEA has forecasted that petrochemicals will be accounting for over a third of the growth in oil demand by 2030, advancing to 50% of demand by 2050 as transportation stimulates.

In case the anticipated global transport stimulation does not occur on the desired scale, the elevated petrochemicals demand would simply get added to the entire oil demand, including fuels for transport.

China is pretty much the apparent destination for the latest petrochemical projects: the nation is the most significant importer of crude oil in the world as well as among the leading three consumers of the commodity.

About Saudi Aramco:

Saudi Aramco, officially known as Saudi Arabian Oil Company, based in Dhahran, Saudi Arabia, is the top producer of oil in the world, which is mainly state-owned and is the globe's most profitable company, even outshining tech leaders like Apple and Google.

The company is the largest integrated energy and chemicals company that is focused on creating value across the hydrocarbon chain, along with providing the people and communities with societal and economic benefits that depend on crucial energy.

The leader is focused on leading the energy transition and is taking responsibility for helping the globe reach a net-zero economy while solving the sustainability challenges of the world.

They are the top supplier for their consumers, offer long-term value creation to shareholders, and provide the communities with reliable, inexpensive, and more sustainable energy.

According to the article by Procurement Resource, Saudi Aramco is all set to build a USD 10 billion refining and petrochemical complex in China which will take advantage of the nation's rising fuel and chemicals demand. The complex will have a capacity of 300,000 barrels of crude per day, with Saudi Aramco delivering 201,000 barrels each day.

The project will be completed in 2026 and is part of the company's strategy to secure long-term oil demand. The project is vital for helping the growth of China's fuel and chemical product demand. It is a big step towards the ongoing downstream expansion strategy of China and the wider region, which is a significant factor boosting the global petrochemical demand.