Saudi Aramco plans to “expand and intensify” cooperation with China in research in areas such as the production of hydrogen and ammonia from natural gas, according to CEO Amin Nasser.
Aramco wants to work with China on hydrogen and blue ammonia, synthetic fuels and the use and storage of carbon capture, Nasser told the China Development Forum in Beijing. “All of these are essential to achieving our long-term, low-carbon ambitions,” he said.
The big oil company is also sizing up possible investments in Chinese projects despite spending constraints stemming from a period of low oil prices as a result of the coronavirus pandemic.
“We see opportunities for new investments in integrated downstream projects to help meet China’s heavy transportation and chemical needs, as well as lubricants and non-metallic materials,” Nasser said.
Oil companies worldwide reported losses or falls in profits by 2020, as strong demand due to the coronavirus pandemic caused lower prices and forced producers to close production. Aramco, the world’s largest producer, was no different. reporting on Sunday a 44% drop in profit and further reductions in investment. However, some advanced or strategic projects are moving forward.
Nationwide, the Jazan refinery is “in operation,” Nasser told reporters at an independent conference call to discuss the gains Sunday. The planned 400,000-barrel-a-day crude processing plant on the southern coast of the Saudi Red Sea was planned Start operating at about half capacity after taking crude in the first quarter of this year, Aramco said in August.
Nasser provided no updates on the timing or capacity of the plant aimed at boosting employment in the remote and less affluent regions of Saudi Arabia’s border with Yemen.
– With the assistance of Anthony Di Paola, Matthew Martin and Lin Zhu
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