Saudi Arabia will grow its petrochemicals industry

Significance

The announcement follows several investments in the sector at home and abroad by Aramco. Riyadh is doubling down on its strategy of converting an increasing proportion of its crude to chemicals. This will help mitigate the effect of changing consumption patterns resulting from the energy transition.

Impacts

• Aramco will largely cease to invest in standalone greenfield refining projects.
• Riyadh will use investment in petrochemicals to improve regional relationships, notably with Oman.
• Aramco and Saudi petrochemicals firm Sabic will expand their technological capabilities to develop more sustainable products.