Saudi Arabia and India hold talks over petrochemicals
A bilateral meeting was held between Saudi Arabia and India in a bid to boost cooperation in the chemicals and petrochemicals sector, reports KNN India on October 15.
In a meeting between India’s department of chemicals and petrochemicals (DCPC) and Kingdom of Saudi Arabia’s ministry of industry and minerals, both sides agreed to collaborate in research and development, discussed investment opportunities, and explored new ways to collaborate across the value chain.
Both sides acknowledged their strengths, Saudi Arabia in petrochemicals and India in speciality chemicals, and recognised the complementarities between the two industries.
Bilateral trade between the two nations stood at $42 billion (£31 billion) in 2024/25, with chemicals and petrochemicals contributing approximately 10 per cent.
The Saudi delegation was led by vice minister in industry and minerals, Khalil bin Ibrahim bin Salamah, while the Indian delegation was led by DCPC secretary Nivedita Shukla Verma.
On October 9, Saudi Aramco, the Saudi-listed oil producer, completed the acquisition of a 22.5 per cent stake in its refining and petrochemicals joint venture Petro Rabigh.
The oil company acquired Petro Rabigh from Japan’s Sumitomo Chemical for 2.63 billion riyals (£547 million) and raised Aramco’s stake in the petrochemical company to approximately 60 per cent.
Aramco is also building an $11 billion (£8.3 billion) petrochemical complex with TotalEnergies at their existing Satorp refinery in Saudi Arabia.
Last month, TotalEnergies said it is expanding in Saudi Arabia due to competitive energy and feedstock costs.
The state-owned oil company is navigating a period of reduced profits due to lower oil prices. In August, Aramco reported a 22 per cent drop in second-quarter profit and identified cost-cutting measures across the company.
Aramco halted expansion plans for three chemicals projects due to weaker oil prices earlier this month, the latest example of delays to Saudi Arabia’s long-term projects as softer oil prices squeeze the country’s finances.
The government and Aramco have been forced to increase borrowings due to pressure, with the company falling into a net debt position last year.
KNN India, Maghrebi.org
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