Saudi Aramco and SABIC suspend Las Haile refinery project and review other investments

Saudi Aramco & SABIC suspend Las Haile refinery, review projects, adjust Asian capex, strengthen China ties amid market uncertainty.

1. Rushail Refinery Project Suspended

recently, Saudi Aramco and its subsidiary Saudi Basic Industries Corporation (SABIC) announced the suspension of plans to build a 400000-barrel-a-day refinery in Ras Al Khair, on the Gulf coast of eastern Saudi Arabia. The decision also shelved the proposed relocation of the project to Jubail. The multi-billion-dollar project for the Las Haile Refining and Chemical Plant was originally a major investment project first announced by SABIC in November 2022, and a year after its construction, it said the project was still in progress.

2. project suspension reason

saudi Aramco and SABIC decided to suspend the Las Haile refinery project mainly because of the uncertainty of demand intensity. Faced with the volatility of the global chemicals market and changing demand patterns, the two companies decided to re-evaluate the feasibility and market potential of the project.

3. revisits other investment projects

at the same time, Saudi Aramco is inspecting three planned chemical plants in Jubail and Yanbu (Yanbu) on the Red Sea to determine whether to continue with the investment. This move shows that Saudi Aramco is taking a comprehensive look at its global investment projects in response to market uncertainty.

4. Adjusts Asian Chemicals Capex

in response to market changes, Saudi Aramco is recalculating its capital spending on chemicals in Asia. By optimizing the allocation of capital, Aramco aims to ensure its competitiveness in the Asian market and meet future market needs.

5. to strengthen cooperation with China

in order to protect the long-term demand for Saudi crude in Asia, Saudi Aramco is seeking a series of deals in China. Just last month, Saudi Aramco announced the signing of a strategic cooperation agreement with Rongsheng and Hengli, which marks a further strengthening of Saudi Aramco's continued contribution to China's long-term energy security and development. Through cooperation with Chinese companies, Saudi Aramco will be able to better understand the changing needs of the Asian market and formulate corresponding investment strategies.

6. future outlook

saudi Aramco and SABIC's decision to suspend the Las Haile refinery project and review other investment projects is a wise decision in response to the uncertainty in the global chemical market. At the same time, Saudi Aramco is actively adjusting its chemical capital expenditure in Asia and strengthening cooperation with Chinese enterprises to ensure its competitiveness and long-term development in the global market. In the future, Saudi Aramco will continue to closely monitor market dynamics and develop investment strategies based on changing demand.