meed-logo

line1 line2 line3
SIGN IN / REGISTER

Aramco’s recalibrated chemicals goals reflect realism

26 March 2025

 

Saudi Aramco told consultants and contractors last year that it was revisiting its investment strategy and execution approach for its liquids-to-chemicals programme.

The central ambition of the strategic programme is to derive greater economic value from every barrel of crude produced in Saudi Arabia by converting 4 million barrels a day (b/d) of Aramco’s oil production into high-value petrochemicals and chemicals feedstocks by 2030.

Aramco and its subsidiary, Saudi Basic Industries Corporation (Sabic), had been tasked with establishing 10-11 large mixed-feed crackers by 2030. These petrochemicals crackers, which included greenfield developments and expansions of existing facilities, were to be built both in Saudi Arabia and in overseas markets.

Achieving this ambition required Aramco and Sabic – the main stakeholders in the liquids-to-chemicals programme – to invest a sum of up to $100bn. Amid considerable cost pressures and significant overcapacity in the global chemicals sector, pushing forward with such a capital-intensive campaign was hard to justify. 

However, while Aramco may have streamlined the programme’s remit, the primary goal of attaining a liquids-to-chemicals conversion rate of 4 million b/d within its global portfolio remains unchanged.

In a presentation detailing Aramco’s financial performance and operational activities in 2024, president and CEO Amin Nasser stated that the company had achieved 45% of the target of the liquids-to-chemicals programme as of the end of last year. Also, 53% of Aramco’s crude oil production is utilised by the downstream sector.

This has been achieved through “greater capital efficiency with low-equity and a high-placement strategy”, Nasser said in the presentation.

Moreover, large-scale petrochemicals projects undertaken by Aramco’s joint ventures with foreign partners in South Korea and Saudi Arabia, namely the Shaheen and Amiral developments, respectively, will significantly contribute to the liquids-to-chemicals target when they come online in 2026 and 2027.

Key chemical projects advance

Aramco continues to make progress with projects deemed crucial to its long-term petrochemicals objectives. One such project is the expansion of Aramco affiliate, Saudi Aramco Jubail Refinery Company (Sasref), into the petrochemicals sector.

Aramco has brought China-based Rongsheng Petrochemical Company on board as a joint-venture partner for the proposed project, which is part of the liquids-to-chemicals programme.

Their aim is to convert the Sasref refining complex in Jubail into an integrated refinery and petrochemicals complex by adding a mixed-feed cracker. The project also involves building an ethane cracker that will draw feedstock from the Sasref refinery.

The project is in the pre-front-end engineering and design (pre-feed) stage, with Aramco previously saying that the construction of large-scale steam crackers and the integration of associated downstream derivatives into the existing Sasref complex would enhance “its ability to meet growing demand for high-quality petrochemical products”.

Meanwhile, Sabic is in the bid evaluation stage with a major project that involves building an integrated blue ammonia and urea manufacturing complex at the existing facility of its affiliate, Sabic Agri-Nutrients Company, in Jubail. 

The estimated $3bn project, called the low-carbon hydrogen San 6 complex, is part of Sabic’s Horizon-I low-carbon hydrogen (LCH) programme. Contractors submitted bids for the project in March last year.

The San 6 complex will have an output capacity of 3,500 metric tonnes a day, or 1.17 million tonnes a year (t/y), of blue ammonia, and a urea production capacity of 3,850 metric tonnes a day, or 1.28 million t/y.

Carbon dioxide (CO2) from the blue ammonia plant will be utilised for urea production, with surplus CO2 from the ammonia plant and post-combustion carbon capture unit to be exported via a third-party pipeline for subsequent sequestration.

Gas transportation and processing projects

Saudi Arabia was the biggest regional spender on midstream and downstream projects last year. To address incremental volumes of gas entering the grid as Aramco increases its conventional and unconventional gas production, the state enterprise spent more than $17bn on gas processing and transportation projects in 2024.

In April last year, Aramco awarded $7.7bn in engineering, procurement and construction (EPC) contracts for a project to expand the Fadhili gas plant in the Eastern Province of Saudi Arabia. The project is expected to increase the plant’s processing capacity from 2.5 billion cubic feet a day (cf/d) to up to 4 billion cf/d.

In June, Aramco awarded 15 lump-sum turnkey contracts for the third expansion phase of the Master Gas System (MGS-3), worth $8.8bn. Then, in August, the company awarded contracts for the remaining two packages of the MGS-3 project, which were worth $1bn. 

Saudi Aramco divided EPC works on the MGS-3 project into 17 packages. The first two packages involve upgrading existing gas compression systems and installing new gas compressors. The 15 other packages relate to laying gas transport pipelines at various locations in the kingdom.

The Master Gas System expansion will increase the size of the network and raise its total capacity by an additional 3.15 billion cf/d by 2028, with the installation of about 4,000 kilometres of pipelines and 17 new gas compression trains.

So far this year, the Saudi energy giant has selected the main contractor for a major project to develop a large-scale carbon capture and storage (CCS) hub in Jubail Industrial City.

India’s Larsen & Toubro Energy Hydrocarbon has been picked to perform EPC work on the first phase of the project, which is called the Accelerated Carbon Capture and Sequestration (ACCS) scheme, worth $1.5bn.

The aim of the ACCS scheme, which is expected to have nine phases in total, is to capture CO2 from Aramco’s northern gas plants at Wasit, Fadhili and Khursaniyah, as well as from the operations of Sabic and Saudi industrial gases provider Air Products Qudra.

The first phase of the ACCS project will have the capacity to store and sequester up to 9 million t/y of CO2 in the planned CCS hub in Jubail. The main facility that will be built in Jubail will capture streams from the acid gas enrichment units of the Wasit, Fadhili and Khursaniyah plants. The CO2 will be compressed, dried and fed into the collection pipeline system.

MEED’s April 2025 report on Saudi Arabia also includes:

> UPSTREAM: Saudi oil and gas spending to surpass 2024 level
> POWER: Saudi power sector enters busiest year
> WATER: Saudi water contracts set another annual record
> CONSTRUCTION: Reprioritisation underpins Saudi construction
> TRANSPORT: Riyadh pushes ahead with infrastructure development
> BANKING: Saudi banks work to keep pace with credit expansion

https://image.digitalinsightresearch.in/uploads/NewsArticle/13477916/main.gif
Indrajit Sen

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Top deals signed at Dubai Airshow 2025

    27 November 2025

    The Dubai Airshow 2025 drew to a close on 21 November, with deals exceeding $202bn, double the $101bn secured at the 18th edition in 2023. 

    This new milestone reinforces Dubai’s position as a global aviation hub and central force shaping the future of the aviation and space industries, according to a statement from the Government of Dubai Media Office.

    The 19th edition of the event, held at Dubai World Central under the theme ‘The Future is Here’, also drew record attendance, welcoming 248,788 visitors, including industry leaders, government officials and aviation specialists from across the globe. 

    More than 1,500 exhibitors took part, with 440 participating for the first time, along with 490 military and civil delegations from 115 countries. The show also included 21 national pavilions, 98 chalets, an extra 8,000 square metres of display space, and a startup ecosystem with 120 startups and 50 investors.

    One of the most globally diverse editions to date, this year’s airshow featured the usual mega-orders, but also a surprise fleet pivot and an emerging picture of the region’s biggest players taking control of their futures by influencing the development of tomorrow’s jets and securing their supply chains. 

    Anchor customer

    UAE national carriers placed orders for 502 aircraft during the five-day event, with Emirates leading the charge. On the first day of the airshow, Emirates announced a $38bn order for 65 new Boeing 777-9 aircraft. The airline also ordered 130 GE9X engines from GE Aerospace, which power the new twin-engined planes. 

    The deal gives Boeing a boost after the 777-9’s debut was delayed to 2027 – but equally significantly, it provides strong backing for Boeing’s feasibility study to develop the 777-10, a larger variant of its 777X family, as Emirates pushes to replace its Airbus A380 fleet.

    “Emirates has been open about the fact that we are keen for manufacturers to build larger capacity aircraft, which are more efficient to operate, especially with projected air traffic growth and increasing constraints at airports,” said Sheikh Ahmed Bin Saeed Al-Maktoum, chairman and chief executive of Emirates Airline and Group.

    “We fully support Boeing’s feasibility study to develop the 777-10 and have options to convert our latest 777-9 order to the 777-10 or the 777-8.”

    Several days later, Emirates also ordered eight more A350-900 aircraft, worth $3.4bn and powered by Rolls-Royce Trent XWB84 engines, while also urging Airbus to explore a larger version of its A350-1000 wide-body.

    Emirates’ commitment to new aircraft at the Dubai Airshow 2025 is worth $41.4bn at list prices, and brings the airline’s total wide-body aircraft orders to 375, with deliveries scheduled through 2038.

    It was also announced that Emirates would deploy Starlink Wi-Fi across its entire in-service fleet, beginning with Boeing 777 aircraft in November 2025 and completing the rollout by mid-2027.

    Airbus pivot

    Flydubai also signed a memorandum of understanding (MoU) with Boeing to purchase 75 Boeing 737 MAX aircraft valued at $13bn. In one of the show’s biggest strategic shifts, a further MoU was signed with Airbus for 150 A321neo aircraft, making the airline a new Airbus customer.

    Sheikh Ahmed, also chairman and CEO of flydubai, said this addition would diversify the airline’s narrow-body fleet and “enable flydubai to play a key role in the success of Dubai World Central’s expansion plans, an airport we aim to become the largest airport in the world”.

    “We look forward to establishing a strong and enduring partnership between flydubai and Airbus,” he said. 

    Etihad Airways confirmed an order for 32 new Airbus aircraft, including freighters, marking a significant expansion of its wide-body fleet, while Gulf Air, Bahrain’s national carrier, finalised a firm order for 15 787 Dreamliners with options for three more as the carrier looks to further develop its international network. The order adds three Boeing 787s to the airline’s commitment this July and brings Gulf Air’s order book to 17 of the versatile widebody jets.

    Saudi Arabia's emerging airline, Riyadh Air, confirmed a purchase of 120 CFM LEAP-1A engines for its incoming A321neo fleet.

    Taking control

    In a clear sign that Gulf airlines are taking charge of their supply chains, Emirates and France's Safran Seats signed an MoU to bring a manufacturing and plane seat assembly factory to Dubai. The joint industrial cooperation, the first of its kind, will initially focus on Emirates’ business and economy class seats for cabin retrofit projects, with plans to expand into new aircraft in the future.

    “This agreement with Safran marks a pivotal and strategic cooperation that establishes Dubai as an aerospace manufacturing hub,” commented Sheikh Ahmed. “We're bringing world-class seat production capabilities and supply chain to our doorstep, creating highly skilled jobs, and developing capabilities to support Emirates and produce seats for export to other carriers.”

    Emirates is also securing its own engine maintenance capabilities, signing an MoU with Rolls Royce to conduct engine maintenance, repair and overhaul on its own A380 fleet at a new plant in Dubai from 2027.

    Green airline fuel

    Sustainability was a core priority at the airshow, with initiatives including the supply of sustainable aviation fuel (SAF) for participating aircraft, the use of electric and propane-powered ground support equipment in partnership with Jetex, and exhibition halls run entirely on renewable energy.

    On the sidelines of the event, Emirates and Enoc Group signed a memorandum of understanding to explore and develop joint initiatives for the supply of SAF to Emirates at its Dubai hub.

    Defence deals

    Capping the exhibition were the 36 deals signed on behalf of the Ministry of Defence and Abu Dhabi Police by the UAE’s Tawazun council – the national authority mandated to enable, regulate and sustain the UAE’s defence and security industrial ecosystem. Valued at AED25.455bn, the deals included contracts for drones, rescue gear, aircraft parts and support.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15167232/main.gif
    Marianne Makdisi
  • Prequalification begins for Riyadh King Salman Stadium

    27 November 2025

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Sports Ministry has issued a notice inviting companies to prequalify for a contract to design and build the King Salman International Stadium in Riyadh.

    The notice was issued on 26 November, with a prequalification deadline of 16 February.

    The stadium will cover an area of about 660,000 square metres (sq m) and will have a seating capacity of 92,000.

    The stadium will feature a 150-seat royal suite, 120 hospitality suites, 300 VIP seats and 2,200 dignitary seats.

    The plan also includes several sports facilities covering more than 360,000 sq m, including two training fields and fan zones; a closed sports hall; an Olympic-sized swimming pool; an athletics track; and outdoor courts for volleyball, basketball and padel.

    The new stadium will host the final of the 2034 Fifa World Cup and will serve as the Saudi national football team’s main headquarters.

    US-based architectural firm Populous is the lead architect for the stadium.

    Construction of the stadium is expected to be completed by 2029.

    The stadium will be located next to King Abdulaziz Park.

    Saudi Arabia stadium plans

    In August last year, MEED reported that Saudi Arabia plans to build 11 new stadiums to host the Fifa World Cup in 2034.

    Eight stadiums will be located in Riyadh, four in Jeddah and one each in Al-Khobar, Abha and Neom.

    An additional 10 cities will host training bases. These are Al-Baha, Jazan, Taif, Medina, Alula, Umluj, Tabuk, Hail, Al-Ahsa and Buraidah.

    There are expected to be 134 training sites across the kingdom, including 61 existing facilities and 73 new training venues.

    The kingdom was officially selected to host the 2034 Fifa World Cup through an online convention of Fifa member associations at the Fifa Congress on 11 December 2024.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15166460/main.jpg
    Yasir Iqbal
  • Morocco signs $861m deal for polysilicon plant

    27 November 2025

    Register for MEED’s 14-day trial access 

    Morocco has signed a MD8bn ($861m) investment agreement with GPM Holding to establish the country’s first polysilicon manufacturing plant in the southern province of Tan-Tan.

    GPM Holding is a US-based company and a key partner in Green Power Morocco (GPM), which specialises in the installation and maintenance of photovoltaic solar panels.

    GPM is a joint venture with UAE-based renewable energy company Amea Power.

    The planned facility will be located in the El-Ouatia industrial zone, according to the North African country’s Ministry of Investment.

    The facility will have an annual production capacity of 30,000 tonnes, with 85% earmarked for export.

    The plant is expected to generate 1,500 direct and more than 2,000 indirect jobs and strengthen Morocco’s position in renewable energy supply chains, particularly in the manufacturing of solar panel components, according to the Ministry of Investment.

    Last year, GPM completed a 34MW solar project in Hjar Nhal, south of Tangier, under a corporate power purchase agreement.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15163133/main.jpg
    Wil Crisp
  • Kuwait plans gas export pipeline

    27 November 2025

    State-owned upstream operator Kuwait Oil Company (KOC) is planning a project to develop a new sour gas export pipeline from booster station 171 (BS-171).

    According to information published by KOC, the pipeline will have a diameter of 24 inches and will run from the facility known as TP-1 to the Intermediate Slug Catcher (ISC).

    The project, which is located in the southeast of Kuwait, will include the installation of bi-directional pig traps above the new pipeline.

    A pig trap is a section of piping that allows the launch or reception of a pipeline pig, a device used to clean the pipeline.

    The chosen contractor will need to provide:

    • Valves
    • Piping
    • Fittings
    • Civil services
    • Structural services
    • Electrical and instrumentation services
    • Tie-ins
    • Testing services
    • Pre-commissioning services
    • Commissioning services

    Kuwait is trying to boost project activity in its upstream sector.

    The country’s national oil company, Kuwait Petroleum Corporation, is aiming to increase oil production capacity to 4 million barrels a day (b/d) by 2035.

    In August, Kuwait announced that it was producing 3.2 million b/d.

    Earlier this month, KOC said it was planning to spend KD1.2bn ($3.92bn) on its exploration drilling programme through 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15163075/main.jpg
    Wil Crisp
  • Emarat awards contract for Dubai airport jet fuel pipeline

    26 November 2025

    Register for MEED’s 14-day trial access 

    Dubai’s Emirates General Petroleum Corporation (Emarat) has awarded a contract for engineering services for a project to build a new jet-fuel supply pipeline to Al-Maktoum International airport in the emirate.

    The contract for end-to-end engineering design services has been won by Bilfinger Middle East, a subsidiary of Germany-headquartered Bilfinger Tebodin.

    The expansion of Al-Maktoum International airport is estimated to be valued at $35bn. The government approved the updated designs and timelines for its largest construction project in April 2024.

    In a statement, the authorities said the plan is for all operations from Dubai International airport to be transferred to Al-Maktoum International within 10 years.

    The statement added that the project will create housing demand for 1 million people around the airport.

    In September last year, MEED exclusively reported that a team comprising Austria’s Coop Himmelb(l)au and Lebanon’s Dar Al-Handasah had been confirmed as the lead masterplanning and design consultants on the expansion of Al-Maktoum airport.

    Construction on the first phase has already begun. In May, MEED exclusively reported that DAEP had awarded a AED1bn ($272m) deal to UAE firm Binladin Contracting Group to construct the second runway at the airport.

    The enabling works on the terminal are also ongoing and are being undertaken by Abu Dhabi-based Tristar E&C.

    Construction works on the project’s first phase are expected to be completed by 2032.

    ALSO READ: Dubai selects Al-Maktoum airport substructure contractor

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15160792/main0620.jpg
    Indrajit Sen