Saudi Aramco, the world’s largest oil producer, announced on Tuesday its plan to reach a target of 8-10 million barrels per day (bpd) of integrated refining and marketing capacity and invest in chemicals worth more than $100 billion over the next 10 years with the aim of converting two million bpd of crude oil into petrochemicals.
Aramco President and CEO Amin Nasser said the company will make the most of those prospects with chemicals investments over the next decade, not including a prospective acquisition.
“We are expanding this business both in Saudi Arabia and in fast-growing overseas markets like China and India, with the aim of converting two million barrels per day of crude oil into petrochemicals—and we may eventually move our target higher to three million barrels,” he said at the 13th annual Gulf Petrochemicals and Chemicals Association (GPCA) in Dubai.
Negotiations are underway for a major share in SABIC, with the aim of creating one of the world’s strongest integrated energy and chemicals companies.
The acquisition would leverage Aramco’s innovative developments in crude oil to chemicals technology, a process that eliminates the refinery stage to transform crude oil directly into valuable petrochemicals.
“Our downstream business ventures will provide a reliable destination for Saudi Aramco’s future oil production, and diversify both the company’s business portfolio and the Kingdom’s economy,” Nasser said.
Aramco’s downstream strategy seeks to enhance its resource base by targeting increased horizontal and vertical integration across the hydrocarbon value chain.
“Our supply, trading, and marketing model will mitigate oil price volatility, generate additional revenues, and expand opportunities for conversion industries, local manufacturers, and service providers —all of which drive job growth and value creation.”
Nasser praised chemicals as the most promising element of the company’s downstream strategy. He said that chemicals will represent about one-third of world oil demand growth between now and 2030, and nearly half by 2050.
Petrochemicals will add nearly seven million bpd of oil demand by 2050, reaching a total of some 20 million bpd.
“This growth will be driven by an expanding world population and a growing middle class enjoying more affluent lifestyles,” he said.
The CEO also announced that Aramco will be expanding this business both in Saudi Arabia and overseas markets like China and India, with the aim of converting two million bpd of crude oil into petrochemicals, and "we may eventually move our target higher to three million barrels."
GPCA Forum is the region’s leading downstream-focused industry event, boasting an attendance where about 50 countries will be represented by more than 2,000 delegates of executives and experts from almost 600 of the world’s leading manufacturers, suppliers, and others spanning the chemicals and petrochemicals sector.
