Oil and Gas Industry Saudi Aramco Sets Out For Expansion in Asia
Saudi Aramco, Saudi Arabia's state owned national oil company plans big expansions in Asia. The company presented plans to increase refinery operation by 50 percent to 6 million barrels/day, investing around US $ 90 billion.
Jeddah/Saudi Arabia – Arabian refinery giant Saudi Aramco announced plans to invest US $ 90 billion to increase refining capacity by 50 percent up to six million barrels/day within the next five years. Most of this future growth is not planned for the domestic Middle Eastern markets, but for refinery operations in Asia: The bulk of Aramco's future refinery expansions is planned for China, said Saudi Armco's CEO Kalidh Al-Falih.
For China, the company plans to enter joint ventures with local partners, to tap the increasing oil consumption of Asia's biggest energy user. According to Frost & Sullivan, a growth partnership company, Saudi Aramco's growth plans are clearly aligned with the diversification objectives of the Kingdom of Saudi Arabia. Other plans of Saudi Aramco include the expansion of its petrochemical branch as well as the exploration of unconventional gas sources such as shale and tight gas, officials stated.