Page 5 - AsianOil Week 11 2022

AsianOil COMMENTARY AsianOil

while also targeting company facilities at Jazan bpd of crude from Aramco, meaning that Saudi
and Abha near the border. crude could account for up to 45% of PKN’s total
The Saudi Press Agency (SPA) reported only feedstock, with flows to be directed to refineries
that there had been an attack, noting that sup- at Kralupy and Litvinov in the Czech Republic,
plies were not affected. Mazeikiai in Lithuania, and Plock and Gdansk
Jazan refinery remains in the commissioning in Poland.
phase, running at around half of its 400,000 bpd This was followed by deals from the Aramco
capacity, with full operations anticipated later Trading Co. (ATC) subsidiary with Germany’s
this year to produce 209,900 bpd of ultra-low Klesch Group and Red Sea National Petrochem-
sulphur diesel, 71,400 bpd of 91 RON and 95 icals Co. (Red Sea) for a combined 210,000 bpd
RON gasoline, 48,500 bpd of high sulphur fuel of crude to downstream facilities in Denmark
oil and 6,700 bpd of LPG, according to Aramco. and Egypt, while discussions are understood
Jazan is one of Aramco’s five wholly owned to remain ongoing to supply crude feedstock
domestic refineries, the others being Riyadh, to Oman’s new Duqm refinery which opens in
Ras Tanura (550,000 bpd), Saudi Aramco Jubail 2023.
Refinery (SASREF, 305,000 bpd) and Yanbu’ Elsewhere, work resumed in late 2021 to
(250,000 bpd). complete the troubled 300,000 bpd Pengerang
It also has another 1.67mn bpd of refining Petrochemical Co. (PRefChem) facility in The
capacity across four JV facilities – the 400,000 Malaysia, where development has been slowed
bpd PetroRabigh alongside Sumitomo Chemi- by accidents since Aramco made a $7bn invest- announcement
cal with 37.5% and 25% public following a 2008 ment in 2018 to acquire a 50% stake. follows last
public offering; the 400,000 bpd, 50:50 SAM- And while November saw the apparent
REF JV with ExxonMobil; the 450,000 bpd collapse of talks for the company to acquire a week’s deal
SATORP facility at Jubail with TotalEnergies; 20% stake in Indian firm Reliance’s spun-off
and YASREF. oil-to-chemicals (O2C) division and its 1.82mn between the
Together, these provide Aramco with a bpd refining slate, Aramco signed preliminary
gross domestic refining capacity of 3.115mn deals for supplies and collaboration with fellow Saudi firm and
bpd (2.335mn bpd net), which will rise to Indian company Oil and Natural Gas Corpora- China’s Sinopec
3.315mn bpd (2.535mn bpd net) once Jazan is tion (ONGC) and its 300,000 bpd Mangalore
commissioned. Refinery and Petrochemicals Ltd (MRPL). for potential
While the Polish and Indian deals are yet to be
Overseas expansion formally approved, Aramco will perhaps offer downstream
The Panjin agreement marks the company’s sec- some insight into their status when it provides
ond overseas refining move this year, following its 2021 full-year update next week. What is clear collaboration.
a January deal with Poland’s Grupa Lotos which is that despite a notable break in its expansion,
included a 30% stake in the 210,000 bpd Gdansk Aramco remains committed to its long-held aim
refinery at a cost of $255mn as well as interests in of increasing its gross global refining capacity to
fuel marketing and wholesale businesses. 8-10mn bpd and to relationships that will enable
PKN also signed a deal for 200,000-337,000 the addition of more dedicated crude outlets.™

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