In­dia’s oil de­mand to be met by Saudi

Chemical Industry Digest - - News & Views -

In­dia, the world’s third-big­gest oil im­porter, is grap­pling with a com­bi­na­tion of ris­ing oil prices and fall­ing lo­cal cur­rency. Re­tail prices for gaso­line and diesel fuel in In­dia are at record highs and the gov­ern­ment has cut its ex­cise tax on fuel to ease some of the pain for con­sumers. Mean­while Ara­bia and other ma­jor pro­duc­ers have shown their com­mit­ment, to cush­ion the market from oil price shocks.

Saudi Ara­bia has the ca­pac­ity to pro­duce 12 mil­lion bpd and is cur­rently pro­duc­ing 10.7 mil­lion bpd, adding that pro­duc­tion will rise fur­ther next month.

Khalid Al Falih, Min­is­ter of En­ergy, Saudi Ara­bia, dur­ing In­dia En­ergy Fo­rum 2018 said that Saudi Ara­bia is com­mit­ted to meet­ing its grow­ing oil de­mand as the State oil com­pany Saudi Aramco plans to sup­ply In­dian buy­ers with an ad­di­tional 4 mil­lion bar­rels of crude oil in Novem­ber. He also added that Saudi Ara­bia wants to in­vest in In­dian down­stream projects and strate­gic oil stor­age.

In­dia plans to build two strate­gic stor­age fa­cil­i­ties to hold 6.5 mil­lion tonnes of oil cost­ing around 110 bil­lion Ru­pees ($1.6 bil­lion) through a joint part­ner­ship be­tween an In­dian state firm and pri­vate com­pany. Falih also said Saudi Ba­sic In­dus­tries Corp (SABIC) is keen to in­vest in In­dia’s chem­i­cal sec­tor. Saudi Aramco has an ini­tial pact to take a 25 per­cent stake in the planned 1.2 mil­lion bpd West Coast re­fin­ery.

Saudi En­ergy Min­is­ter Khalid al-Falih ad­dresses the gath­er­ing dur­ing In­dia En­ergy Fo­rum in New Delhi

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