Aramco pursues downstream agenda
The Saudi titan’s renewed plans to lock in demand through downstream developments coincide with consumers seeking to guarantee supply
As fears over energy security pushed oil prices towards $100/bl in early 2022, state oil giant Saudi Aramco doubled down on its strategic overseas downstream investment. It resurrected a refining and petrochemicals project in China, with its promise of a guaranteed outlet for exports to its largest crude buyer, while the part-acquisition of a Polish refiner spoke to ambitions to secure a larger slice of the European market. And a long-term sales and offtake agreement with an aspirant Egyptian downstream developer highlighted Aramco’s increasing emphasis in these and other recent deals on maximising petrochemical conversion rates. China is both the largest single importer of Saudi oil—averagi
Also in this section
24 April 2024
But even planned exploration activity is unlikely to reverse declining output from mature fields
23 April 2024
Cheaper Russian barrels and lower overall crude prices have helped cut key oil consumer’s import bills in election year
22 April 2024
Pursuing three different goals as part of the same package may mean achieving none of them
22 April 2024
Beijing’s renewed targeting of NOC management could threaten investment