4/16/2019 Saudi Aramco seeks to double its refining network to 10 MMbopd by 2030

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Saudi Aramco seeks to double its

refining network to 10 MMbopd by
2030
By ANTHONY DIPAOLA on 4/11/2019

(/media/10863/sadara-gas-plant-photo-saudi-aramco.jpg)
Sadara gas plant. Photo: Saudi Aramco.
DUBAI (Bloomberg) -- More than a third of Aramco’s oil is currently fed into its fully-owned and joint venture
re neries, according to its bond prospectus. The company plans to double its re ning network to handle as
much as 10 MMbopd by 2030, locking in a friendly buyer for the kingdom’s crude.

Aramco’s “goal is to provide a reliable destination for its future oil production,” said John Stewart, an analyst
at consultant Wood Mackenzie Ltd. The expansion “would make it the biggest re ner in the world by some
margin.”

Saudi Arabia is leaning on Aramco’s co ers to build its sovereign wealth fund and help develop new
industries that can break the kingdom’s reliance on oil. For its part, Aramco is trying to wring more pro t
from the crude it pumps by turning it into gasoline and diesel as well as plastics and other materials used in
consumer goods. The company is spending $69 billion for a majority stake in petrochemicals maker Saudi
Basic Industries Corp.

The Saudi Arabian Oil Co., as the state-owned producer is formally known, will still probably sell to outside
buyers even if it hits its re ning target. The company processes a mix of crudes from its elds in Saudi
Arabia. Its re nery ventures abroad, while designed to use the company’s crude, will likely rely on a mix of oil

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4/16/2019 Saudi Aramco seeks to double its refining network to 10 MMbopd by 2030

from the kingdom and other suppliers.

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Aramco fully owns three re neriesnews
in Saudi
andArabia and the Motiva Enterprises LLC plant in the U.S. Other
updates.
facilities are joint ventures with foreign partners. By the end of the year, it will start crude processing at new
facilities in the kingdom and in Malaysia that will bring its total re ning capacity to more than half the
company’s current oil production. By 2030, half of Aramco’s re ning capacity will be located outside of Saudi
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Arabia, WoodMac estimates.

Further reading on the Saudi state oil company: Saudi Aramco makes unprecedented debut with $12
billion sale of bonds (/news/2019/4/9/saudi-aramco-makes-unprecedented-debut-with-12-billion-sale-
of-bonds)

That will make Aramco an even bigger consumer of the oil it pumps. The company said as much in its
prospectus, describing its expansion as a way “to secure crude oil demand by selling to its captive system” of
re neries.

Aramco has signed provisional deals to meet its re ning capacity target. It also plans to grow in chemicals, an
industry where demand is rising faster than that for transport fuels. The company aims to turn some 3
million barrels of daily crude production into chemicals.

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