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Aramco plans to double its refining network by 2030
16/04/2019

Dubai, April 12 - Saudi Aramco currently supplies more than one-third of its oil to its wholly-owned and joint-venture refineries, according to its bond prospectus. The company plans to double its refining network to 10m barrels a day by 2030, locking in a friendly Saudi crude buyer.
 
John Stewart, an analyst at wood Mackenzie, a consultancy, says Aramco's goal is to provide a reliable destination for its future oil production. The expansion will make it by some measures the world's largest refiner.
 
Saudi Arabia is relying on Aramco's coffers to build its sovereign wealth fund and help develop new industries that could break the country's dependence on oil. For its part, Aramco is trying to make more money from crude oil by converting it into gasoline, diesel, plastics and other materials used in consumer goods. The company will pay $69 billion for a majority stake in petrochemicals producer Saudi basic industries.
 
Saudi Aramco, formally known as Saudi Aramco, could still sell oil to outside buyers even if it achieves refining targets. The company processes a variety of crude oil from fields in Saudi Arabia. Its overseas refineries, though designed to use the company's crude, are likely to rely on a mix of Saudi and other suppliers.
 
Aramco has three refineries in Saudi Arabia and a Motiva Enterprises LLC plant in the United States. By the end of the year, the company will begin processing crude at new plants in Saudi Arabia and Malaysia, which will bring its total refining capacity to more than half of current oil production. By 2030, half of Aramco's refining capacity will be outside Saudi Arabia, WoodMac estimates.



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