Page 9 - AsianOil Week 19 2022

AsianOil SOUTHEAST ASIA AsianOil

Aramco agrees downstream

deal with Thailand’s PTT

PROJECTS & STATE-BACKED Saudi Aramco this week that the arrangement “represents an important
COMPANIES agreed a memorandum of understanding step forward as we deepen and broaden this
(MoU) with Thai counterpart PTT to explore relationship to achieve greater co-operation.”
potential collaboration in the downstream sec- Meanwhile, PTT’s president and CEO Auttapol
tor. The move comes as part of Aramco’s long- Rerkpiboon highlighted the supply security ben-
term strategy of expansion in Asia with a view efits of deeper ties with Aramco, while alluding
to guaranteeing outlets for its domestically pro- to the extension of the relationship “beyond con-
duced crude oil. ventional energy”. The move comes
During a meeting in Bangkok, the companies The move follows Aramco’s final investment
agreed to work towards deeper co-operation in decision (FID) in March on the development of as part of
the sourcing of crude oil and the marketing of an integrated refinery and petrochemical com-
refining and petrochemical products and LNG, plex in north-eastern China in collaboration Aramco’s long-
with an Aramco press release noting blue and with local partners.
green hydrogen and clean energy initiatives as The Huajin Aramco Petrochemical Co. term strategy
other potential areas of focus. (HAPCO) was formed in late 2019 between of expansion in
The Saudi firm has no liquefaction capacity the Saudi firm and China’s North Huajin
and comments over the past year or two suggest Chemical Industries Group Corp. and local Asia.
that it is more likely to direct investment towards government-owned Panjin Xincheng Indus-
hydrogen and carrier fuels like ammonia, with trial Group. Aramco said that the JV will
a view to extending its position as the world’s build a $10bn, 300,000 barrel per day (bpd)
“pre-eminence in oil and gas” into the nascent refinery capacity and ethylene-based steam
hydrogen sector. cracker which is expected to be commis-
It does, however, appear to be an opportunity sioned in 2024.
for Aramco’s downstream and trading teams to In line with the company’s strategy of increas-
leverage stronger ties with another Asian cus- ing the number of outlets dedicated to its crude
tomer to shelter Saudi crude from long-term production, Aramco intends to supply 70%
market volatility while continuing to diversify (210,000 bpd) of the facility’s feedstock, taking
revenue streams. a 35% stake in the project, with Norinco sub-
Aramco’s vice president of sales, trading and sidiary Huajin holding 36% and Xincheng the
supply planning, Ibrahim Al-Buainain, said remaining 29%.™

Week 19 13•May•2022 www. NEWSBASE .com P9