Daily Energy Report
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April 17, 2025
Chart of the Day
Argus: Saudi Petchem Expansion Plans to Cap Naphtha Exports
Summary
Saudi Arabia's push to integrate petrochemical units with oil refineries—like the new Aramco-Sinopec deal at the Yasref refinery—is likely to reduce naphtha exports and impact gasoline blending. As more naphtha is redirected into petrochemical production, exports have steadily declined. While immediate effects on gasoline output may be limited, future impacts are expected as aromatics units demand more naphtha. Aramco’s broader strategy to prioritize petrochemicals over fuels.
Figure (1) shows Saudi yearly exports of naphtha since 2021 by destination. Naphtha exports have been declining, and we expect them to continue to decline.