Saudi Aramco plans to “expand and intensify” research collaboration with China in areas including the production of hydrogen and ammonia from natural gas, “said Chief Executive Officer Amin Nasser.
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 company is also discussing possible investments in Chinese projects, despite spending constraints due to a period of low oil prices caused by 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,” said Nasser.
Oil companies worldwide reported losses or declining profits for 2020 as falling demand due to the coronavirus pandemic led to lower prices and forced producers to shut down production. Aramco, the world’s largest producer, was no different, Sunday reported a 44% drop in earnings and further investment cuts. Still, some advanced or strategic projects are underway.
Domestically, the Jazan refinery is “up and running,” Nasser told reporters at a separate conference call to discuss earnings on Sunday. Planned 400,000 barrels per day crude processing plant on the southern coast of the Red Sea in Saudi Arabia was planned starts at about half capacity after using crude oil in the first quarter of this year, Aramco said in August.
Nasser has not provided any updates on the plant’s schedule or capacity intended to boost employment in the remote and less wealthy regions along Saudi Arabia’s border with Yemen.
– Assisted by Anthony Di Paola, Matthew Martin and Lin Zhu
Adds comments from CEO in sixth paragraph.