Saudi Aramco plans to “expand and intensify” cooperation with China in research in areas such as the production of hydrogen and ammonia from natural gas, according to CEO Amin Nasser.
Aramco is looking to work with China on blue hydrogen and ammonia, synthetic fuels and carbon capture use and storage, said Nasser 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 evaluating possible investments in Chinese projects, despite spending restrictions stemming from a period of low oil prices as a result of the coronavirus pandemic.
“We see opportunities for more investment in integrated downstream projects to help meet China’s needs for heavy transport and chemicals, as well as lubricants and non-metallic materials,” said Nasser.
Oil companies globally reported losses or falling profits for 2020, as the drop in demand due to the coronavirus pandemic led to lower prices and forced producers to stop production. Aramco, the world’s largest producer, was no different, reporting on Sunday a 44% drop in profit and further investment reductions. Even so, some advanced or strategic projects are underway.
Internally, the Jazan refinery is “functioning,” Nasser told reporters on a separate conference call to discuss profits on Sunday. The planned 400,000 bpd crude oil processing plant on the southern coast of the Red Sea of Saudi Arabia has been set to started operating at about half capacity after removing oil in the first quarter of this year, Aramco said in August.
Nasser did not provide updates on the plant’s schedule or capacity that aims to increase employment in remote and less affluent regions along the Saudi Arabian border with Yemen.
– With the help of Anthony Di Paola, Matthew Martin and Lin Zhu
(Adds comments from the CEO in the sixth paragraph.)