Saudi Aramco will invest more than $100 billion in chemicals over the next 10 years while seeking “a better balance between our upstream and downstream segments,” says the company’s president and chief executive officer.
The investment figure excludes “a prospective acquisition,” Amin H. Nasser told the Gulf Petrochemicals Association Forum in Dubai. Aramco is negotiating to buy the Saudi government’s 70% share of petrochemical manufacturer Saudi Basic Industries (SABIC; OGJ Online, July 24, 2018).
Nasser said Aramco seeks 8-10 million b/d of integrated refining and marketing capacity. He noted that the chemical share of oil demand is expected to expand from about one-third to nearly half by 2050.
With investments in Saudi Arabia and high-growth countries such as China and India, Nasser said, Aramco targets capacity for conversion of crude oil into petrochemicals of 2 million b/d.
“And we may eventually move our target higher to 3 million bbl,” he said.
Aramco and SABIC plan to build a 400,000-b/d crude-to-petrochemicals complex at Yanbu.