Saudi Aramco is reviewing its decision to buy 25% of Sempra Energy’s Port Arthur LNG terminal in Texas, US, and scaling back plans for its US$20 billion Yanbu petrochemicals plant, sources have told Bloomberg.
The crash in energy prices in 2020 means that it is seeking to save money to preserve its shareholder dividend, according to unnamed sources, having pledged not to cut it. Other oil companies such as BP and Shall have already cut their dividends.
Saudi Aramco has allegedly already taken staff off the Port Arthur project, which was announced in January 2020, and as well as the 25% stake in the terminal, would have included the purchase of 5 million tpa of LNG. Bloomberg’s informants said that all of Saudi Aramco’s major greenfield projects are under review, and it is planning to invest in existing assets instead. At Yanbu, the company will instead integrate existing refineries and build petrochemical facilities onto them. A deal to build a US$10 billion refining and petrochemicals plant in China was suspended in August 2020.
Saudi Aramco declined to comment on the claims.