Saudi Aramco plans to “expand and intensify” cooperation with China on research in areas including hydrogen and ammonia production from natural gas, according to Chief Executive Officer Amin Nasser.

Aramco is looking to work with China on blue hydrogen and ammonia, synthetic fuels and carbon capture utilization and storage, Nasser said at the China Development Forum in Beijing. “All of these are essential to achieving our long-term, low-carbon ambitions,” he said.

The oil major is also sizing up possible investments in Chinese projects despite spending constraints arising from a period of low oil prices as a result of the coronavirus pandemic.

“We see opportunities for further investments in integrated downstream projects to help meet China’s needs for heavy transport and chemicals, as well as lubricants and non-metallic materials,” Nasser said.

Oil companies globally reported losses or falling profit for 2020 as plunging demand due to the coronavirus pandemic led to lower prices and forced producers to shut in output. Aramco, the world’s biggest producer, was no different, reporting Sunday a 44% drop in profit and further investment reductions. Still, some advanced or strategic projects are going ahead.

Domestically, the Jazan refinery is “on stream,” Nasser told reporters on a separate conference call to discuss earnings on Sunday. The planned 400,000 barrel-a-day crude-processing plant on Saudi Arabia’s southern Red Sea coast was set to start running at about half capacity after taking crude in the first quarter this year, Aramco said in August.

Nasser didn’t provide updates on the schedule or capacity for the plant that’s meant to bolster employment in the remote and less-wealthy regions along Saudi Arabia’s border with Yemen.

Source:
courtesy of BLOOMBERG

by Verity Ratcliffe

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