MOSCOW (MRC) -- Saudi’s Aramco Trading Company (ATC) expects to increase its oil trading volume to 6 million barrels per day (bpd) in 2020, 50 percent higher than current levels, reported Reuters with reference to the company’s top official.
"Currently, we’re at 4 million barrels per day and with expansion think our target is 6 million barrels per day," President and Chief Executive Ibrahim Al-Buainain said at the Asia Pacific Petroleum Conference (APPEC).
About 50 percent of the 2.5 million bpd of oil products it trades currently are hedged, he said.
The company is also looking at building its capacity in trading liquefied natural gas (LNG), using its Singapore office as a trading hub, Buainain said.
ATC plans to set up its European office in either Geneva or London and also aims to have an office in Fujairah to manage oil storage, he said.
In Singapore, Buainain said he expects the company’s office to grow to 30 to 40 people within the next two years.
ATC also expected to benefit from a switch by ships to cleaner fuels in 2020 as mandated by the International Maritime Organization.
"The second-hand effect of the IMO is the oversupply of high-sulfur fuel oil (HSFO) which in our case is a positive because we are net short on fuel oil and that will help us in meeting our requirements (for HSFO) in power generation," Buainain said.
Buainain has headed the trading arm of Saudi Aramco since 2016.
ATC was set up in 2012 to market refined products, base oils and bulk petrochemicals. It started trading non-Saudi crude oil and refined products from its overseas refineries in the past years as the world’s largest oil exporter seeks to optimize profits.
As MRC wrote before, Saudi Aramco and France's Total are considering building a mixed-feed cracker and derivatives in Jubail, near their joint refining complex. The cracker is expected to have a capacity of 1.5 MMtpy.
Saudi Aramco is an integrated oil and chemicals company, a global leader in hydrocarbon production, refining processes and distribution, as well as one of the largest global oil exporters. It manages proven reserves of crude oil and condensate estimated at 261.1bn barrels, and produces 9.54 million bbl daily. Headquartered in Dhahran, Saudi Arabia, the company employs over 61,000 staff in 77 countries.