Skip to content Skip to Search
Skip navigation

Aramco cancels Saudi project amid Asia focus

Aramco has cancelled a 400,000 bpd refinery and chemicals project at Ras Al Khair, according to a media report Aramco
Aramco has cancelled a 400,000 bpd refinery and chemicals project at Ras Al Khair, according to a media report

Aramco, the world’s largest oil producer, has scrapped plans for a refinery and chemicals project in Saudi Arabia to focus on Asia expansion, mainly in China.

The 400,000 barrels per day (bpd) facility at Ras Al Khair, which was being planned in collaboration with Saudi Basic Industries Corporation, an Aramco subsidiary, has been cancelled, Bloomberg reported, citing informed sources.

A proposal to move the project to Jubail has also been put on hold.

Three planned chemical facilities in Jubail and Yanbu on the Red Sea are under review due to concerns over a potential slowdown in domestic demand, the report said.

This decision follows Aramco’s increased investments in Asia, where the oil major is pursuing chemical sector deals and finalising long-term oil supply agreements with China. 

Despite the challenges, Aramco intends to continue to develop its liquids-to-chemicals business, Bloomberg reported, citing a company statement.
 
The goal is to increase throughput in integrated refining and petrochemicals complexes to up to four million bpd by 2030, the statement said.

Last month Aramco said it was accelerating plans to expand the liquids-to-chemicals project in Jubail in collaboration with China’s Rongsheng Petrochemical Company.

Saudi Arabia, the Gulf’s biggest economy, has attracted greenfield FDI of nearly $29 billion, more than double the total in 2022.

China was by far the biggest investor, with $16.8 billion, reflecting Saudi Arabia’s pivot to the East since the “watershed” visit of President Xi Jinping to Riyadh in December 2022. 

This month King Salman International Airport Development Company (KSIADC) signed an agreement with EWPartners, an investment company backed by Saudi Arabia’s Public Investment Fund, to establish a special economic zone to increase trade with China. 

Latest articles

UAE Turkey trade DMCC

More Turkish companies open in UAE after trade deal

A free trade agreement between the UAE and Turkey has been followed by a jump in the number of Turkish companies opening offices in the UAE.  The signing of the comprehensive economic partnership agreement (Cepa) between the two nations in March 2023 was designed to create greater collaboration and remove tariffs on a range of […]

Based on the offer price range, Lulu is set to list with a market capitalisation of between AED20.04bn and AED21.07bn

High demand leads Lulu to upsize IPO stake to 30%

Lulu Retail Holdings has increased the size of its initial public offering (IPO) by 5 percent to 30 percent to potentially raise AED6.32 billion ($1.72 billion) on the Abu Dhabi Securities Exchange (ADX) following high demand from investors. The retail chain operator in the Middle East initially offered a 25 percent stake sale. The total […]

If the Maaden deal goes ahead it will create the seventh largest aluminium manufacturer in the world

Bahrain’s Alba looking to Europe after Maaden deal

Aluminium Bahrain (Alba) will keep exploring mergers and acquisitions, with a particular eye on Europe, once it completes its multi-billion dollar deal with Saudi Arabian Mining Company (Maaden). The deal is expected to be signed off in the first half of next year. The two companies penned a non-binding agreement in September and are in […]

UAE energy minister Suhail Al Mazrouei said the UAE is a model for an ambitious and practical transition to clean energy

UAE to invest $54bn to meet sustainable energy goals

The UAE plans to invest up to AED200 billion ($54.4 billion) to meet sustainable energy demand over the next six years, minister of energy and infrastructure Suhail Al Mazrouei has said. The move intends to “decarbonise economy and achieve net-zero emissions by 2050”, the UAE state-run Wam news agency reported. “Our efforts to diversify the […]