Oct 11 - Saudi Aramco to Raise Domestic Refining Capacity to 3.5 Million Barrels Per Day by 2016

Source Press
Company Saudi Aramco 
Tags Strategy - Downstream
Date October 24, 2011

(Reuters) Saudi Aramco, increasingly looking to expand in downstream activities, will raise its domestic refining output capacity to 3.5 million barrels per day (bpd) by 2016 with the start-up of new plants, an Aramco executive said on Monday.

"We can see that total current in-kingdom refining capacity is 2.26 million bpd. With the addition of the three facilities, the capacity will have increased...in 2016 to almost 3.5 million bpd.Omair said the additions will come from the three refineries whose development is now under way and which will have a capacity of 400,000 bpd each. "The first is our joint venture in Jubail with Total (Satorp), it will begin commissioning in 2012. Red Sea refining in Yanbu will begin commissioning in 2014, and Jizan refinery in 2016, while each of the new refineries will be designed keeping petrochemical products such as benzene, xylene and paraxylene in mind. Sasref (Aramco-Shell Jubail refinery) is already producing benzene."

The Kingdom's domestic fuel consumption has been booming on the back of rising population and economic growth. Heavy government subsidies on fuel, making the price at the pump a fraction of what it is in the global markets, has also exacerbated the demand.

Aramco also considers building three new joint venture refineries in Asia as part of plans to boost its global refining capacity by 50 percent to more than 6 million barrels per day (bpd), the chief executive of Aramco, Khalid al-Falih, said in April. Asia is Aramco's largest and fastest growing oil market.

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