Saudi Aramco directs over half of its crude production to downstream operations

Saudi Aramco is accelerating its downstream strategy to reduce reliance on crude oil price volatility by channeling a larger share of its production into refining and petrochemicals. In 2025, around 53% of its crude output was processed through its own downstream network, marking a significant increase from approximately 43% in 2021. The company stated that closer integration between upstream, refining, and chemicals operations is aimed at delivering more stable earnings and maximizing value from each barrel produced.

Petrochemicals remain at the core of this transition, with Aramco continuing to expand its liquids-to-chemicals approach, which converts more crude directly into chemical feedstocks instead of traditional transport fuels. During 2025, the company increased investments in both China and Saudi Arabia, including its involvement in the Fujian integrated complex and the Amiral expansion at SATORP. Although overall earnings were impacted by lower oil prices, Aramco noted that downstream profitability improved when excluding one-off impairments, largely supported by stronger refining margins.

Meanwhile, escalating regional tensions have added operational challenges. CEO Amin Nasser cautioned that a prolonged conflict could significantly disrupt oil and gas supplies from the Middle East. Retaliatory attacks have already impacted key energy infrastructure, including the temporary shutdown of the Ras Tanura Refinery, one of Saudi Arabia’s major export facilities.

Aramco also emphasized the strategic importance of alternative export routes, particularly the east-west pipeline to Yanbu on the Red Sea. This route enables crude shipments to bypass the Strait of Hormuz and is expected to play an even greater role as the company moves forward with plans to expand its capacity.

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