Saudi Aramco to develop $44 bln refinery complex on India's west coast

Saudi Aramco to develop $44 bln refinery complex on India's west coast

Saudi Aramco to develop $44 bln refinery complex on India's west coast

Falih said state-owned Saudi Aramco can bring in another strategic partner as an global company has already shown interest in having a partnership with the company on the project.

The entry of the Saudi national oil company will provide big support to the country's largest refinery as half of the crude oil required for processing there will be supplied by Aramco.

Saudi Arabian Oil Co.is looking for more crude refining partnerships in India, the world's fastest-growing oil market, as part of a plan to double capacity to produce gasoline and other fuels.

Saudi Aramco and Total SA have joined hands for a $5 billion petrochemical complex that would be built near the refinery in Jubail.

Saudi Aramco has finally chose to enter the Indian market with equity participation in India's largest oil refinery in Maharashtra, proposed by a consortium of state-owned oil marketing companies. In 2016, the country beat Japan as the world's third-largest oil consumer after the USA and China.

The refinery at Ratnagiri on the west coast will be able to process up to 1.2 million barrels of crude a day, the Saudi company said after signing a memorandum of understanding with Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation.

But, Saudi Aramco's interest does not end with being just a manufacturing company, said Saudi Arabia's Minister for Energy, Industry and Mineral Resources, Khalid Al Falih.

Last year, Aramco said it would invest 18 billion Dollars in Motiva to increase the capacity of the Port Arthur facility and move to petrochemical production.

In a bid to increase the share of oil imports from India, Saudi Aramco has signed an MoU for developing 60 MT per annum refinery in Ratnagiri, Maharashtra. "We want to be consumer-facing". "We're very much interested in retail", he said. It has signed such deals with USA and French companies earlier this month - essentially in the petrochemicals sector - and refinery projects in Indonesia and Malaysia past year.

As part of the deals, Motiva Enterprises, Aramco's Houston-based refining company, will examine TechnipFMC's production of mixed-feed ethylene, a feedstock used to make many types of plastics. Aramco has a refinery joint venture with Sinopec and Exxon Mobil, and is building a 300,000-bpd refinery with Norinco. Reports say the deal has been done aiming to secure buyers. For India too, Saudi Arabia was the biggest source of crude till 2016-17 (April-March) till it lost that position to Iraq in 2017-18.

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