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Aramco puts the brakes on mega projects at home and looks to Asia.

AramcoThe world’s largest oil producer has decided to shut down its ambitious engines. Refinery and Chemical Plant Project At Ras Al Khair, a 400,000 barrel per day operation. The news reported by Bloomberg is not limited to this: even the idea of ​​moving everything to Jubilee has ended up in the drawer. Subsidiary style It also partnered with Oman’s OQ and Kuwait Petroleum International to develop the site, but both projects were permanently shelved.

The Saudi multinational is increasingly looking east, where demand for chemical products continues to grow. in particular,Asia It seems to represent the new. The Promised Land For people like Aramco, who have realized that plastics can outlast petrol in the energy transition era.

Aramco, China at the heart of strategies

The choice to stop internal projects does not come by chance. Aramco, along with Subic, is trying to get its hands on a series. Strategic Agreements in ChinaWith the aim of GEnsure continuous demand For Saudi Oil, the company focuses on everything. Chemical productsa sector in which growth is destined to be concentrated in Asian markets, where industrial change is accelerating at a rapid pace.

With the energy transition, Aramco sees a future where demand for petrochemicals, e.g PlasticIt will overtake traditional fuels like petrol and diesel, especially in Asian markets. Meanwhile, the company is consolidating its role as an emerging global player with the expansion of a petrochemical complex in Jubail, together with TotalEnergies.

Investing under the lens

It is not just domestic demand that is weighing on Aramco’s plans. The oil giant is taking stock. The entire investment package worth billions in Saudi Arabia.

Aramco has paused. Three chemical plants Plans were made in Jubil and Yanbu on the Red Sea coast amid fears of a possible slowdown in domestic demand.

The company told Bloomberg it plans to “expand its liquids-to-chemicals business, with a goal of processing up to 4 million barrels per day by 2030”. In short, everything revolves around optimization of projects.

Expansion and strategic investment in China

The Saudi giant is not limited to announcements: it has already got its hands on a share. 3.4 billion dollars Rongsheng Petrochemical Co. I, a Chinese company in this field. And the matter did not end there. New contracts are being finalized with other Chinese companies, and Aramco is not stopping with China. South Korea and India are also on its map. For future business expansion.

Saudi Arabia has made significant deals with its economic weight in the Gulf. In 2023, it attracted foreign direct investment of approx. 29 billion dollarsa clear jump over last year. Half of that, 16.8 billion, comes from China, a sign of an increasingly solid economic pivot, gaining further momentum with President Xi Jinping’s visit to Riyadh in 2022.

And we step up the accelerator: King Salman International Airport Development Company recently signed an agreement with EWPartners, to create a special economic zone with the support of the Saudi Sovereign Fund. It aims to further strengthen trade with Beijing.

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