The global oil production leader Saudi Aramco is now expanding its footprint into petrochemicals as well, managing itself to become a leading provider for the Asian markets where the growing middle class clamors for various petrochemicals.
According to a study by Colorado based energy analysts IHS, Saudi Aramco has established itself as a major key player in the global chemical production just after its seven years of entry into the petrochemicals business.
“We expect they will become a force to be reckoned with during this decade,” Sanjay Sharma, vice president of Middle East and India markets at IHS Chemical said in a statement.
IHS has also revealed the fact that although the company is the sixth largest refiner in the world, but its chemical portfolio accounts for about 10 % of its revenues and earnings which is indeed appreciable.The company has been successful in gaining a competitive edge in chemical hungry markets of Middle East and North East Asia due to its upcoming two multibillion dollar projects.
As reported by IHS, it is estimated that the company will kick off its production to 3 million metric tons per year of plastic and chemical products after a joint venture has been signed with the Dow Chemicals. Not only this, the company has further secured its foothold in the market by entering into a joint venture with Sumitomo of Japan which has already opened a $10 billion petrochemical complex in 2009 in Rabigh, Saudi Arabia and is going further expansion.
Earlier this year, Saudi Aramco’s CEO said the company’s downstream investments will top $100 billion in the next decade, Reuters reported.