State-run Saudi Arabian oil and gas company Saudi Aramco has unveiled plans to raise its integrated refining and marketing capacity from the current 5 mb/d to 8-10 mb/d, in order to better balance between its upstream and downstream segments.
Saudi Aramco also aims to be a global leader in petrochemicals by 2050. The company estimates that petrochemicals will be a key driver for the growth of global oil consumption (1/3 of the oil demand growth by 2030 and 50% by 2050) and could add nearly 7 mb/d of oil demand by then, reaching a total of 20 mb/d. Saudi Aramco will invest US$10bn over the next 10 years to develop this business both in Saudi Arabia and overseas (China and India in particular) with the aim of converting about 2-3 mb/d of crude oil into petrochemicals.
The company's strategy aims at enhancing its resource base and targets horizontal and vertical integration across the hydrocarbon value chain. Its main growth objective include in particular downstream, refining and petrochemicals. The idea is to seek and secure new markets for its crude oil production and to lessen the risk of a slowdown in oil demand.
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