SAUDI Arabia plans to double its refinery capacity in the next 10 year

Published:

18 January 2012 11:36

Updated:

04 April 2012 07:04

National oil company Saudi Aramco is targeting China as a leading oil consumer with potential to import more than the US, say oil analysts. The investment will see Saudi Aramco increase its refining output to 8m barrels per day over the next 10 years, chief executive Khalid al-Falih told reporters this weekend at a signing ceremony with Sinopec to build a new refinery in Saudi Arabia. Saudi Aramco’s plan to focus on China for its refinery investments follows previous agreements to build refineries in the country. Saudi Aramco and Sinopec plan to build a refinery in Fujian province and PetroChina has its own joint deal with Saudi Aramco for a new refinery in China.

The supplier-consumer partnership comes as China’s oil imports are expected to rise this year. A report by the Organisation of the Petroleum Exporting Countries published yesterday said China’s recent strong oil demand came despite economic concerns in the last two months. Chinese oil demand will grow by 540,000 barrels per day in 2011 and 420,000 bpd in 2012, Opec said. Its thirst for oil and downstream products stems from its investments in infrastructure and transport that support economic growth.

Car sales in 2011 rose more than 32%, despite weakening auto sales from late summer when sales incentives in the form of tax breaks for small-engined vehicles expired, said Opec.