Saudi Aramco plans to expand and intensify cooperation with China on research in areas, including hydrogen and ammonia production from natural gas, according to Amin Nasser CEO.
Aramco wants to work with China on blue hydrogen and ammonia, synthetic fuels and the use and storage of carbon capture, Nasser said at the China Development Forum in Beijing. “All of this is essential to achieving our long-term low-carbon ambitions,” he said.
The oil major is also increasing potential investments in Chinese projects, despite spending constraints due to a period of low oil prices due to the coronavirus pandemic.
“We see opportunities for further investment in integrated downstream projects to help meet China’s needs for heavy transportation and chemicals, as well as lubricants and non-metallic materials,” Nasser said.
Oil companies worldwide reported losses or declining profits for 2020 because the drop in demand due to the coronavirus pandemic led to lower prices and forced producers to close their production. Aramco, the largest producer in the world, was no different, reported a 44% drop in profit and further investment cuts on Sunday. A few advanced or strategic projects are still going on.
Locally, the Jazan refinery is ‘up and running’, Nasser told reporters in a separate conference call to discuss earnings Sunday. The planned factory for processing 400,000 barrels per day on the southern Red Sea coast of Saudi Arabia has been set up starting with about half the capacity after taking rough in the first quarter of this year, Aramco said in August.
Nasser has not provided updates on the schedule or capacity for the plant, which is intended to boost employment in the remote and less affluent regions along Saudi Arabia’s border with Yemen.
– With the help of Anthony Di Paola, Matthew Martin and Lin Zhu
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