© Reuters. File photograph: President and CEO of Aramco Amin Nasser speaks at China Improvement Discussion board 2023, in Beijing, China, on March 26, 2023. REUTERS/Jing Xu/File photograph
By Maha El Dahan and Yousef Saba
DUBAI (Reuters) – Saudi Aramco (TADAWUL:) Chief Govt Amin Nasser stated on Sunday the oil large was taking a look at additional alternatives to spend money on China, the place he stated oil demand was strong and rising.
“Up to now we’re within the early a part of 2024, demand is wholesome and rising in China,” Nasser stated on a media name following the discharge of Aramco’s outcomes that confirmed web revenue falling to $121.3 billion from a document $161.1 billion in 2022 on decrease oil costs.
“We see that when it comes to their offtake from the totally different producers world wide,” he stated.
Aramco has invested in Chinese language refineries with crude provide offers hooked up and is in talks for extra, with a give attention to changing liquids into chemical compounds.
Nasser stated the nation’s refineries had been among the most absolutely built-in and had the best conversion charges.
“We’re presently taking a look at some alternatives for funding in China.”
Nasser sees the worldwide oil market remaining wholesome all through 2024.
“We count on it to be pretty strong, we’re taking a look at development of about 1.5 million barrels,” Nasser stated.
Nasser put demand for 2024 at 104 million barrels versus a mean of 102.4 million barrels in 2023.
Aramco goals to develop its gasoline manufacturing by 60% by 2030 from 2021 ranges.
Aramco could companion with MidOcean Power – through which it agreed final 12 months to take a strategic minority stake – to spend money on liquefied (LNG) tasks in geographical areas apart from Australia, Nasser stated.
“We’re partnering with MidOcean in Australia and we’d companion with them in different enclaves relying on the alternatives,” he stated.
Nasser additionally stated Aramco was enthusiastic about investing in LNG alternatives within the U.S. however stated he couldn’t reveal additional particulars.
“We’re in dialogue with quite a few firms.”
Sources informed Reuters final week Aramco is in talks to spend money on section 2 of Sempra Infrastructure’s Port Arthur LNG challenge in Texas, which represents a proposed enlargement to the already producing first section.
Discussions are additionally nonetheless ongoing for a tie-up with French carmaker Renault (EPA:) and China’s Geely for a 15% to twenty% stake of their joint-venture for combustion and hybrid engines, Nasser stated.