Saudi Aramco President and CEO Amin Nasser revealed at the 13th Annual Gulf Petrochemical and Chemicals Association (GPCA) Annual Forum that Saudi Aramco plans to invest more than $ 100 billion in chemicals over the next 10 years-excluding investment in Sabic's anticipated acquisition as it seeks to elevate its downstream business to an equally important position as upstream.
Nasser emphasizes that chemicals are the most promising factor in the company's downstream strategy. "Saudi Aramco will capitalize on these prospects with more than $ 100 billion in chemical investments over the next 10 years-excluding an anticipated acquisition," Nasser said. "We are not only expanding the size of this business in Saudi Arabia, but also in other fast-growing regions such as China and India. The goal is to convert 2 million barrels of crude oil into petrochemicals every day-we may eventually increase our target to 3 million barrels.
"From now to 2030, chemicals will account for one-third of world oil demand growth and nearly half by 2050. By 2050, petrochemical products will increase oil demand by nearly 7 million barrels per day, and total output will be approximately daily 20 million barrels. "Nasser said," This growth will be driven by an expanding world population and a growing middle class enjoying a richer lifestyle. "
"Our ultimate goal is that an integrated refining and marketing capability of 8 million to 10 million barrels per day will create a better balance between our upstream and downstream sectors," Nasser said.
He added: "Our downstream commercial enterprises will provide a reliable purpose for Saudi Aramco's future oil production and diversify the company's business portfolio and the kingdom's economy."
Saudi Aramco's downstream strategy aims to strengthen its resource base by increasing the horizontal and vertical integration of the entire hydrocarbon value chain. "With a diverse, integrated and strong business portfolio," Nasser said, "our supply, trading and marketing models will ease oil price volatility, generate additional revenue, and expand opportunities to switch industries, local manufacturers and service providers-these Both help boost employment growth and create value. "
The acquisition of a major stake in Saudi Basic Industries Corporation, a diversified chemical leader in Riyadh, is under negotiation with the goal of creating one of the world's most powerful integrated energy and chemicals companies. The acquisition will take advantage of Saudi Arabian Basic Industries' technological innovations in converting crude oil into chemicals, or C2C, a process that skips the refining stage and directly turns crude oil into a valuable petrochemical.
The Gulf Petrochemical Association Forum was held in Dubai. It is an activity in the region focusing on downstream industries. More than 2,000 representatives from nearly 600 companies from 50 countries attended the forum.