Aramco puts on hold 3 chemicals expansion projects: Report

Core Insights - Saudi Aramco is postponing three chemical expansion projects due to weaker oil prices impacting local spending and is focusing on international investments [2][4] - The company is delaying major engineering and design work on these facilities to manage cash flow during this period of low oil prices [3][4] - Aramco is prioritizing investments in international refining and chemical facilities, particularly those near high-demand markets in China and South Korea [5] Investment Focus - The company is holding back on two joint venture projects located in Yanbu and another facility in Jubail, while continuing to invest in oil and gas production projects like the Jafurah natural gas field [5][6] - Aramco plans to spend over $50 billion this year, primarily on upstream gas projects and maintaining oil production capacity [6] Future Projects - The company is working on four crude to chemicals projects, with two in China, one in Korea, and a venture with TotalEnergies in Saudi Arabia, expected to commence within the next three years [7] - In April, Saudi Aramco, Sinopec, and Yasref signed a venture framework agreement to facilitate a significant petrochemical expansion at Yasref in Yanbu [8] - In December 2022, Saudi Basic Industries Corp. (SABIC) signed a memorandum of understanding with Saudi Aramco and Sinopec to explore the feasibility of developing an integrated petrochemical complex in Yanbu Industrial City [9]