Page 24 - Plastics News July 2017

FEATURES

Saudi Aramco and other Gulf oil giants seek to invest in India,

Kazakhstan

Saudi Aramco was said to be seeking to enter exclusive talks on investing in the largest refining
project under way in India – revealed in a coincident industry report to have been the world’s
fastest-growing crude consumer last year.

audi Aramco was said to be seeking to enter exclusive published the previous day – India is the world’s third
Stalks on investing in the largest refining project under largest crude consumer, while the potential for demand
way in India – revealed in a coincident industry report to growth is evident in per-capita energy consumption of
have been the world’s fastest-growing crude consumer only around 25% of the global average. According to the
last year. Meanwhile, petrochemicals-focused Saudi BP survey, oil consumption surged by 7.8% to 4.5 million
Basic Industries Corp. (SABIC) has committed to studying
projects in Kazakhstan as part of a wider co-operation
agreement between Riyadh and Astana.
Meanwhile, Abu Dhabi government-owned Mubadala
Investment Co. (MIC) appears set to build on a history
of involvement in the key Caspian state forged by the
two legacy companies from which the new firm was born
last month. It likewise agreed to study petrochemicals
investments in the country’s Atyrau downstream hub.

India’s Oil Minister Dharmendra Pradhan revealed on June
14 that Aramco was requesting exclusivity in negotiations
on taking a stake in the estimated US$40 billion refinery bpd in 2016 – more than four times the world average.
and petrochemicals project planned in the western
Maharashtra state. Aramco has unsurprisingly named the Asian powerhouse as
among the key target geographies in the company’s plan
The Saudi firm’s involvement had been discussed for some to increase worldwide refining capacity from 5.4 million
time but the impetus was increased by the signature on bpd to 8-10 million bpd by the middle of next decade.
the same day of the joint venture (JV) agreement between The incentive to invest downstream has been intensified
the three state firms behind the landmark project – which by recent conditions of world oversupply of crude and
would create the world’s largest greenfield refinery with bearish forecasts of long-term future demand. The state
capacity of 1.2 million bpd. India Oil Corp. (IOC) will initially firm has also discussed involvement in the expansion of
hold a 50% stake, with Bharat Petroleum Corporation Ltd BPCL’s Bina refinery in the central Madhya Pradesh state
(BPCL) and Hindustan Petroleum Corporation Ltd. (HPCL) from 120,000 bpd to 310,000 bpd and in a 1.9 million tpy
owning 25% apiece. “Saudi Aramco is interested to be a petrochemicals complex planned in Gujarat in the north-
partner with the mega-refinery from the early stages of west by state-owned ONGC. SABIC’s proposed venture
conception to implementation,” Pradhan was quoted as into Caspian production would be a newer development
saying in the local press. – and was reported in the Kazakh press as having been
The project is scheduled for completion by 2022 and is agreed during a visit to the Caspian state by Saudi Energy,
envisaged encompassing a naphtha cracker and aromatics Industry & Mineral Resources Minister Khalid al-Falih in
and polymers units. As Pradhan pointed noted during early June. This reportedly focused mainly on ensuring
the JV signing ceremony – and as was confirmed by BP’s Astana’s continued commitment to the agreement by a
well-respected Annual Statistical Review of World Energy group of major non-OPEC oil producers to reduce crude

Plastics News | July 2017 24