 New solutions from Aramco
(China Daily)
Updated: 2008-10-06 07:41 Saudi Aramco, the national oil company of Saudi Arabia, is the largest oil corporation in the world in terms of proven crude oil reserves and production. Its business covers a wide range, including oil and gas exploration, oil refining and distribution, as well as international shipping. Mohammed Al-Madi, regional vice-president and chief representative of Saudi Petroleum Ltd Beijing Representative Office, a wholly owned subsidiary of Saudi Aramco, talks with China Business Weekly reporter Wan Zhihong about the company's achievements in China. Q: When did you enter the Chinese market, and how do you see the importance of the market? A: Saudi Aramco established a sales and marketing subsidiary office in Beijing back in 1998, at a time when China's crude oil imports were small. Since then, we have established close supply relationships with China's leading refiners - bonds that will continue to strengthen over time. The volume of crude oil trade between the two parties has been steadily increasing. In 2007, Sinopec imported nearly 23 million tons of crude oil from Saudi Aramco at an average of 460,000 barrels per day (bpd). This year Sinopec will be looking to import 32.4 million tons at an average of 650,000 bpd. It is expected that by 2010, the average rate will increase to 1 million bpd, and by 2015, the rate will reach 1.5 million bpd. According to the International Energy Agency, in 2004 China alone accounted for one-third of global growth in oil demand, and it overtook Japan to become the world's second largest oil consumer. By 2030, Chinese oil consumption is expected to more than double, rising to over 13 million barrels daily. Even more critically, China's oil imports will increase nearly five-fold over the same period, to nearly 10 million barrels per day - roughly equivalent to the United States' current crude oil imports. Q: At present in China how many projects you are involved in, and what are the latest developments?
A: Sinopec, Fujian province, ExxonMobil and Saudi Aramco on March 30, 2007 held an inauguration ceremony in Beijing to mark the formal government approval of joint venture contracts and granting of business licenses for their two joint ventures in Fujian province - Fujian Refining & Petrochemical Co Ltd and Sinopec SenMei (Fujian) Petroleum Co Ltd. The two joint ventures, with a total investment of about $5 billion, are the first fully integrated refining, petrochemicals and fuels marketing project with foreign participation in China. Synergies from these two world-scale, integrated businesses, closely coupled with the strengths of the four partners and a long-term crude supply agreement with Saudi Aramco, significantly enhance the competitiveness of this project, and help ensure its world-class performance. It will also boost the development of China's petrochemical industry and contribute to the economic development of Fujian province. Saudi Aramco and Sinopec signed a Memorandum of Understanding (MOU) on June 23, 2008 in a mutual effort to deepen the existing cooperation between the two companies and strengthen their relations and business development opportunities. Q: Apart from oil and gas, what is your plan in other new-energy areas? A: With climate change and stricter regulations high on the environmental agenda, many nations are preparing to transition to low-carbon economies. In addition, future levels of supply and demand are anticipated to reflect a low-carbon emphasis. Hydrogen-based technologies with CO2 capture for transportation and refinery applications have the potential to achieve significant market penetration, primarily due to the fact that they are environmentally benign and have high energy conversion efficiency. Liquid petroleum fuels with their high energy densities, availability and the existing infrastructure for delivery and distribution will likely play a major contributing role in hydrogen production in the near to medium-term future. Part of Saudi Aramco's strategic technology positioning in this scenario is a novel catalyst system called Thermoneutral Reforming currently being pursued by our research and development center in partnership with King Fahd University of Petroleum and Minerals. The aim is to develop a highly efficient, cost-competitive hydrogen production process that operates on oil-based fuels. This method will address the increased hydrogen demand for clean fuel processes, as well as future mobile technology including hydrogen delivered in filling stations. Q: What is your contribution in environmental protection, and have you got any such projects in China? A: Saudi Aramco is developing new pre-refining processes to desulfurize whole crude oil and produce sweetened oil. This step anticipates that less sweet crude will be available to global markets, and refiners will increasingly need to meet market requirements for lower sulfur-content clean fuels. Saudi Aramco's fuel quality road map, a plan stretching into 2030 for cleaner, higher-quality fuels, sends a clear message worldwide that hydrocarbon fuels can meet the most stringent environmental standards. The map sets a timetable for introducing clean fuels meeting ambient air quality standards in the Kingdom's urban centers. (China Daily 10/06/2008 page7) |
