Saudi Aramco will double crude oil refining capacity to 10 mb/d by 2030

State-run Saudi Arabian oil and gas company Saudi Aramco has outlined plans to boost the processing capacity of its global refining network to 10 mb/d by 2030. By then, about half of the company's refining capacity could be located outside of Saudi Arabia. As of 2019, more than a third of the company's oil is fed into its fully-owned and joint venture refining facilities. Even if it hits its refining target, Saudi Aramco is likely to continue selling its refined products to outside buyers.

Earlier in 2019, Saudi Aramco made significant moves in Asia's refining sector. The company focuses on the development of international operations. Saudi Aramco not only pushes into overseas exploration and production (upstream activities), but also plans to build up a portfolio across the value chain and expand its activities in the midstream and downstream sectors. It signed an agreement to acquire a 9% stake in the Zhejiang Zhoushan greenfield refinery and petrochemical complex project in the city of Zhoushan, in Zhejiang (China). The refinery is currently being built and will have a processing capacity of 800,000 bbl/d.

Saudi Aramco also agreed to form a joint venture (JV) with the Chinese company Norinco (China North Industries Corporation) and Panjin Sincen to jointly develop another refining and petrochemical complex in the city of Panjin, in Liaoning (northern China). Saudi Aramco will own 35% of the newly formed Huajin Aramco Petrochemical company, with Norinco and Panjin Sincen holding 36% and 29%, respectively. The JV will operate a 300,000 bbl/d refinery, which is expected to start commercial operations in 2024. Saudi Aramco will supply 70% of the crude feedstock for the refining complex.