Aramco calls off Ras Al-Khair refining plant, reviews 3 other projects: Report

15/10/2024 ِ Argaam
Saudi Aramco's oil tanks

Saudi Aramco's oil tanks 


Saudi Aramco canceled plans to build a refinery and chemicals project in the Kingdom and is reviewing three other projects as it evaluates spending plans with a focus on expanding in Asia, Bloomberg reported today, Oct. 15.

 

Aramco and Saudi Basic Industries Corp. (SABIC) will not proceed with the planned 400,000 barrel-a-day facility at Ras Al Khair. Moreover, a proposal to move the project to Jubail was shelved, Asharq News reported, citing unnamed sources close to the matter.
 
Three planned chemical facilities in Jubail and at Yanbu on the Red Sea are being checked to determine whether the company will go ahead with the investments, the sources added.
 
The company is seeking deals in China that would also secure long-term demand for Saudi crude. Aramco believes that the use of commodities such as plastics will surpass the growth in gasoline and diesel consumption amid the energy transition, with most of the expansion in chemicals likely to come from Asia.
In November 2017, Aramco and SABIC inked a memorandum of understanding (MoU) to develop a fully integrated crude oil to chemicals (COTC) complex in Saudi Arabia.
This MoU follows the Heads of Agreement (HoA) signed in June 2016 between the two companies, which governed the feasibility study for the development of a fully integrated petrochemicals complex in the Kingdom.

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