What are Aramco’s priorities in Asia after cancelation of Saudi chemical project?
The Saudi oil giant is showing increasing interest in Asia’s petrochemicals market amid the energy transition.
Saudi Arabia’s state oil company canceled a domestic refinery project as part of an increased focus on Asia, according to a Tuesday report, a development that follows the kingdom's growing ties to the continent.
Bloomberg reported that Aramco will not proceed with its plans to build a refinery and chemical facility at Ras Al Khair, located on the Gulf coast, and shelved plans to move the project to Jubail further south.
Aramco and the Saudi Basic Industries Corporation (SABIC) began studying the Ras Al Khair project in 2022. The plan was to build a facility to convert 400,000 barrels of oil per day into petrochemicals, SABIC announced at the time. Aramco is a majority owner of SABIC.
Bloomberg described the move as an indication that the Saudi oil giant is "recalibrating its spending on chemicals to Asia” in anticipation of greater demand on the continent.
