Saudi Aramco’s plan to diversify its downstream portfolio reached another milestone last week, as the OPEC giant signed an agreement with India to invest in the planned 1.2 mmb/d Ratnagiri refinery in Maharashtra state. In return, Aramco receives a 50% stake in the refinery – itself a joint venture between Indian Oil, HPCL and BPCL, previewing a possible future where India’s state refiners are merged into one – and assurances that Saudi Arabia crude will always find a home in India. Over the last year, Aramco planned a spat of deals designed to do exactly this – ensure that it has captive demand in key crude markets, particularly in Asia – and of late, the plans have taken a further dimension: expansion into petrochemicals.
In the US, Aramco is now the sole owner of the Port Arthur refinery under Motiva, having cajoled Shell into a divorce of their former joint venture. Post-divorce, Aramco quickly announced up to US$30 billion in investments up to 2023 for America’s largest refining site – which some saw as a move to curry favour with the new Trump administration – and earlier this month, announced it was looking at adding a new 1.5 mtpa ethylene plant using ethane cracked from US shale fields in Texas. At home in Saudi Arabia, Aramco has signed a US$5 billion deal with France’s Total to build a 1.5 mtpa ethylene plant that will be integrated with the existing joint venture 440 kb/d Satorp refinery in Jubail.
Notice a pattern emerging? It becomes more evident when considering Aramco’s latest investments in Asia. Long entrenched in Japan, Aramco has been courting Chinese refiners to ensure continued market share in the most important energy market in the world, fending off competition from Russia, Iraq and Iran. The latest deal revolves around a stake in PetroChina’s 260 kb/d Anning refinery in Yunnan, which has yet to be finalised, along with chatter that China will take a direct stake in Aramco through its planned IPO. But petrochemicals seem to becoming more important for Aramco. Last month, it formally concluded its US$7 billion participation in the US$27 billion RAPID refinery by Petronas in Malaysia, with a significant petrochemical portion of at least 3.6 mtpa. At the same time, there seems to be no movement on Aramco’s planned investment in Indonesian downstream, including a plan to expand Cilacap, none of which include major petrochemical portions.
The plan to own half of Ratnagiri jives in with this approach. The US$44 billion Indian refinery will need crude, and what better way than to partner with the world’s largest oil producer to secure that? In return, Aramco gains access to the world’s fastest growing energy market and Ratnagiri’s massive planned petrochemical capacity of 18 mtpa. With this concluded, Aramco now has downstream refining and petrochemical ‘silos’ in the USA, Middle East, India, China and Southeast Asia; that’s all of the major markets covered. The next step would be to deepen its ties in China, so watch what Saudi Aramco does next.
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Already, lubricant players have established their footholds here in Bangladesh, with international brands.
However, the situation is being tough as too many brands entered in this market. So, it is clear, the lubricants brands are struggling to sustain their market shares.
For this reason, we recommend an impression of “Lubricants shelf” to evaluate your brand visibility, which can a key indicator of the market shares of the existing brands.
Every retailer shop has different display shelves and the sellers place different product cans for the end-users. By nature, the sellers have the sole control of those shelves for the preferred product cans.The idea of “Lubricants shelf” may give the marketer an impression, how to penetrate in this competitive market.
The well-known lubricants brands automatically seized the product shelves because of the user demand. But for the struggling brands, this idea can be a key identifier of the business strategy to take over other brands.
The key objective of this impression of “Lubricants shelf” is to create an overview of your brand positioning in this competitive market.
A discussion on Lubricants Shelves; from the evaluation perspective, a discussion ground has been created to solely represent this trade, as well as its other stakeholders.Why “Lubricants shelf” is key to monitor engine oil market?
The lubricants shelves of the overall market have already placed more than 100 brands altogether and the number of brands is increasing day by day.
And the situation is being worsened while so many by name products are taking the different shelves of different clusters. This market has become more overstated in terms of brand names and local products.
You may argue with us; lubricants shelves have no more space to place your new brands. You might get surprised by hearing such a statement. For your information, it’s not a surprising one.
Regularly, lubricants retailers have to welcome the representatives of newly entered brands.
And, business Insiders has depicted this lubricants market as a silent trade with a lot of floating traders.
On an assumption, the annual domestic demand for lubricants oils is around 100 million litres, whereas base oil demand around 140 million litres.
However, the lack of market monitoring and the least reporting makes the lubricants trade unnoticeable to the public.
Headline crude prices for the week beginning 11 February 2019 – Brent: US$61/b; WTI: US$52/b
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