Saudi Aramco is in discussions to invest in two upcoming refineries in India as it looks to secure a stable market for its crude oil. As the world’s largest oil exporter, Aramco sees India – the fastest growing emerging market and the third-largest oil consumer as a key partner. Meanwhile, India aims to become a global refining hub. Western nations are cutting crude processing capacity in favor of cleaner fuels.
Shifting Oil Import Dynamics
Saudi Arabia’s share of India’s oil imports has declined. Indian refiners have invested billions to upgrade their plants and diversify crude sources. Many refiners now purchase cheaper alternatives, including Russian crude, to maximize cost-efficiency.
Investment in Major Refinery Projects
Aramco is in separate talks to invest in:
- Bharat Petroleum Corporation’s (BPCL) planned refinery in Andhra Pradesh.
- Oil and Natural Gas Corporation’s (ONGC) proposed refinery in Gujarat.
- Aramco has been actively exploring refining opportunities in India for years.
Previous Refinery Partnerships in India
In 2018, Aramco joined a consortium of Indian companies to develop a 1.2 million barrels per day refinery and petrochemical complex in western India. In 2019, it signed a non-binding agreement to acquire a 20% stake in Reliance Industries’ oil-to-chemical business.
As reported by msn.com, Saudi Aramco is investing in India’s refining sector to secure its long-term foothold in the region. This move also supports India’s ambitions to become a leading global refining hub.
