Saudi Aramco eyes higher hydrogen market share, explores potential deals: Nasser

Saudi Aramco President and CEO Amin Nasser

Saudi Aramco seeks to raise its sustainable, maximum production capacity from 12 million to 13 million barrels per day (pbd), Amin Nasser, President and Chief Executive Officer (CEO), told a press conference today, Aug. 9.   

However, this might take some time, especially as Aramco has long term plans, Nasser explained. 

The company is working to develop its gas business to meet the increasing local demand with commercial returns, and to provide gas as feedstock in line with its hydrogen production plans. 

The oil giant's capital expenditure is expected to reach $35 billion (SAR 131 billion) in 2021, an increase of 30% compared with a year earlier.  

The world's largest oil exporter focuses on improving its performance through integration with its subsidiaries, especially SABIC, in addition to boosting the asset efficiency and expanding its trade business.  

Talking about new deals to sell some assets, Nasser indicated that the company is exploring more potential deals to offer to investors.   

"We are looking at the potential for other deals that we are currently in negotiation (about)," the top executive said.  

He also told the briefing that Aramco is looking for offtake agreements with potential buyers before it can expand its output in hydrogen, expecting strong potential for growth and exports.  

Commenting on the Shareek program, Nasser said it will help accelerate the company's growth, noting that Aramco will focus on localizing its supply chains through the program that would lower the production cost in the long run.   

Aramco seeks to benefit from the incentives offered by the Shareek program for the renewable energy sources, to ensure 50% of the Kingdom's power and gas needs by 2030.