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Saudi Arabia

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Saudi Arabia plans to quadruple the volume of oil that it allocates to petrochemicals production to 4 million b/d by 2030 in order to add value to its hydrocarbon sales, according to energy ministry data. The kingdom currently allocates roughly 1 million b/d of oil to petchems, but the plans call for an additional 1.6 million b/d to be allocated to domestic projects and 1.4 million b/d to overseas projects, the data show. Sources familiar with the matter say that China and India are being considered as target markets for Saudi Arabia's overseas petchem expansion. State-controlled Saudi Aramco has emerged as one of the world's largest petchem producers since its acquisition of Saudi Basic Industries Corp. (Sabic) in 2020. Investing in petchem capacity abroad would be one way for Aramco to lock in long-term oil demand, while also adding value to its hydrocarbons. It could also shield Saudi Arabia from a decline in global consumption of transportation fuels in the years ahead as the result of a shift to electric vehicles, biofuels and hydrogen.

Topics:
Chemicals, Refining
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