Saudi Aramco CEO Eyes Investments in China Amid Growing Oil Demand
Exploring Opportunities in China
Saudi Aramco’s Chief Executive, Amin Nasser, expressed interest in expanding investments in China, noting the robust and increasing demand for oil in the country. Aramco has been actively involved in various deals in refining and petrochemicals in China, with a focus on enhancing its presence in the region.
Optimistic Outlook for Oil Market
Nasser highlighted that oil demand in China is expected to continue growing in 2024, with a positive outlook for the global oil market. He predicted a growth of approximately 1.5 million barrels per day, positioning the total demand for 2024 at 104 million barrels a day.
Strategic Decision on Production Capacity
The Saudi government directed Aramco to revert to its previous target of 12 million barrels per day production capacity, scrapping the plan to increase it to 13 million barrels per day. Despite this adjustment, Aramco is strategically focusing on optimizing its maximum production capacity through ongoing projects such as Zuluf, Marjan, and Berri.
Exploring Gas and LNG Opportunities
Aramco aims to significantly increase its gas production by 60% by 2030. The company is also considering partnerships in liquefied natural gas (LNG) projects with companies like MidOcean Energy, with potential investments in the US market as well.
Expansion into New Ventures
Nasser revealed ongoing discussions regarding potential investments in the lithium sector, exploring opportunities in battery manufacture. Aramco’s strategic approach includes evaluating partnerships with companies like Renault and Geely for joint ventures in combustion and hybrid engines.
The evolving landscape of Aramco’s investments reflects a dynamic outlook on diversification and growth, with a keen focus on strategic collaborations and emerging markets.
