Saudi Arabia to build three new oil refineries

refinery saudi-daniel west sxc.huSaudi Aramco is reportedly planning to enter the retail market by setting up gas stations that will be fully owned by the company. (Image source: Daniel West/sxc.hu)Saudi Aramco has announced that it is building three new refineries with a capacity of 400,000 bpd each in Saudi Arabia

Khalid bin Abdulaziz Al-Falih, president of Saudi Aramco, said that the company is building the refineries in Jazan; Jubail, which will be a joint venture between SATORP and Total; and Yanbu, a joint venture between Yasref and China’s Sinopec. The state-owned company is also expanding its two chemical complexes — Sadara and Petro Rabegh, Saudi Gazette reported.

Over the last three decades, the Gulf region has exported low-price petrochemical materials and imported a variety of technologies, instead of adding the maximum values for hydro carbonic material through more diversification and appropriation of products, a move that would have enabled the producers to establish secondary and specialized industries and produce export-oriented manufactures and semi-manufactured goods, Al-Falih said.

Saudi Aramco is reportedly planning to enter the retail market by setting up gas stations that will be fully owned by the company.

The move comes as part of the firm’s strategy to become an integrated energy company that enters into more business ventures, including petrochemicals and the sales of refined products.

However, no exact date has been disclosed for when the first Saudi Aramco retail operation will start but the company said it is weighing several strategic options to expand the company’s operations.

Saudi Aramco has already received approval for establishing a fully owned company for retail services. The new company is licensed to build, operate and maintain service stations in selected areas.

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