Friday, August 21, 2020

Saudi Aramco suspends plans for $10b refinery in China

Saudi oil Aramco refinery

Saudi Aramco is intent on saving on costs as much as possible, which is why it won't be pressing ahead with a planned $10 billion petrochemical complex in China. Image Credit: AFP

https://gulfnews.com/business/energy/saudi-aramco-suspends-plans-for-10b-refinery-in-china-1.1598015552231

Saudi Aramco suspends plans for $10b refinery in China

Riyadh: Saudi Arabia's state oil company has suspended a deal to build a $10 billion refining and petrochemicals complex in China, as the company slashes spending to cope with low oil prices.

Saudi Aramco decided to stop investing in the facility in China's northeastern province of Liaoning after negotiations with its Chinese partners. The uncertain market outlook was behind the decision.

China North Industries Group Corp. and Panjin Sincen were to be the other partners.

The oil-price crash and the virus's impact on energy demand have changed the calculations for energy companies' projects. Aramco plans deep cuts to its capital spending as it tries to maintain a $75 billion dividend amid low crude prices and rising debt. The kingdom - Aramco's main recipient of those dividends - is suffering a major squeeze on its public finances.

The joint venture was signed when Crown Prince Mohammed bin Salman was in Beijing in February last year - and at the time was seen as a landmark deal with a key ally. Saudi Arabia wanted to increase market share in Asia and also has encouraged Chinese investment in the kingdom.

Lots of fanfare

The Saudis were set to team up with Norinco and Panjin Sincen to form an entity called Huajin Aramco Petrochemical Co. The kingdom was going to supply as much as 70 per cent of the crude for the 300,000-barrel-a-day refinery.

The Chinese side will press ahead with the project, which also includes an ethylene cracker and a paraxylene unit. And the joint venture remains an option for the future.

Refiners have taken a hit as the virus curbed demand globally and margins have been squeezed. That's changed the investment case for the refining business. Saudi Aramco had also been in talks with Indonesia's state energy company Pertamina earlier this year over a refinery expansion project, but negotiations ended without an agreement and Pertamina is looking for another partner.

 

2 comments:

  1. Hello, Are you in need of a loan? Do you need Financial Support?
    I'm Susan Benson. I'm a lender and also a financial consultant.

    Do you need a business loan, Personal loan, Mortgage loan or a loan to complete your project? if your answer is yes, I will advise you to contact my firm. We render all kinds of loan services including long term and short term loans. For more info, write to us via Email: (sunshinefinancialgroupinc@gmail.com) or Message us directly on WhatsApp via: +447903159998 & receive a response in an instant.

    We are a comprehensive financial service company and we are committed to help you improve your long-term and short-term financial goals because your financial stability is our ultimate goal.

    Here are some reasons why you should contact us for a loan;
    * Convenience - You can Apply for a loan anytime, anywhere.
    * Flexible Amount - You decide how much you want to borrow.
    * Fast Direct Funding - Receive your loan within 24 hours after approval.  
    * Flexible interest rate of 3%.
    * High Approval Rates
    * Flexible Repayment - You Get The Chance To choose the Repayment Date, either weekly, monthly or yearly for a duration of 1-30 years.
    * Simple online application.
    * Personalized guidance and expertise.
    * No hidden Charges

    A lot of people are in need of financial support to start up a business and complete their project and they are finding it so difficult to get a loan from their local banks or other financial institutes. I can assure you that we can help you out from your financial difficulties because we have helped numerous individuals and organizations who have been facing financial difficulty all over the world. When you apply with us, you’re applying with a trusted company that cares about your financial needs, our utmost Priority is your financial stability and you’ll be taken care of  through the whole process.

    For more information about our loan offer, kindly send us your loan request via:
    Email: sunshinefinancialgroupinc@gmail.com OR;
    WhatsApp: +447903159998

    ReplyDelete
  2. On the other hand she might have found a guy who she is seeing so i feel you should hack the phone because some women are mischievous they keep secret and find a way to move out of this i feel there is someone she is seeing so you can contact WWW.HACKINTECHNOLOGY.COM and see so you can have a concrete reason so its up to you just a piece of advise from a rea life similar problem

    ReplyDelete