Dubai: Aramco abandons plans for a refinery and chemicals project in Saudi Arabia to concentrate on expanding in Asia, particularly in China.
The planned facility in Ras Al Khair, which was set to process 400,000 barrels per day in partnership with Saudi Basic Industries Corporation, an Aramco subsidiary, has been scrapped, as reported by Bloomberg.
Additionally, a proposal to relocate the project to Jubail is currently on hold.
Three chemical facilities planned for Jubail and Yanbu on the Red Sea are also under review due to concerns about a potential slowdown in domestic demand, the report indicates.
This decision aligns with Aramco's growing investments in Asia, where the company is actively pursuing deals in the chemical sector and finalising long-term oil supply agreements with China.
Aramco aims to continue developing its liquids-to-chemicals business, with a goal of increasing throughput in integrated refining and petrochemical complexes to four million barrels per day by 2030.
Recently, Aramco announced it is accelerating plans for its liquids-to-chemicals project in Jubail in collaboration with China’s Rongsheng Petrochemical Company.
In a related development, King Salman International Airport Development Company (KSIADC) recently signed an agreement with EWPartners, an investment firm backed by Saudi Arabia’s Public Investment Fund, to establish a special economic zone aimed at boosting trade with China.
