Saudi Aramco's expansion in the Indian market encounters uncertainties

In Saudi Aramco's transformation plan, investment in the Indian chemical market is an important part
.
However, Saudi Aramco's investment in India may encounter some variables

Suspension of stock delivery transactions

In August 2019, when Saudi Aramco was preparing to go public, Saudi Aramco and Reliance Industries signed a non-binding letter of intent
.
According to this letter of intent, Reliance Industries sold 20% of its refining and chemical business to Saudi Aramco and divested the business into a separate subsidiary with an estimated transaction value of US$15 billion

For the fourth fiscal quarter ending March 31, 2021, Reliance Industrial's refining business sales were approximately US$13 billion
.
The company is the second largest producer of paraxylene in India, the fourth largest producer of purified terephthalic acid, the sixth largest producer of polypropylene and ethylene glycol, and one of the largest integrated producers of polyester.

Reliance Industry's own plan

Analysts believe that the reason why Reliance Industries chose to suspend trading at this time is because of its own green transformation needs, and many businesses have become non-sale products
.

The US "Chemical Weekly" pointed out that Reliance Industries recently announced plans to establish a renewable energy and materials business unit, including the development of the Dhirubhai Ambani green energy gigabit complex in Jamnagar, India
.
According to the plan, this will become one of the largest integrated renewable energy manufacturing bases in the world

In addition, Xincheng Industry pledged last year to achieve net zero carbon emissions by 2035, and its goal is to invest more than 600 billion Indian rupees in the new energy business in the next three years, and Jamnagar is the core of this business
.
The company plans to build an integrated solar photovoltaic module factory for the production of solar energy in Jamnagar, an advanced energy storage battery factory for the storage of intermittent energy, an electrolyzer for the production of green hydrogen, and a plant for the production of hydrogen.

In addition, Jeffrey’s analysts pointed out that the company’s debt relief was a significant factor in its suspension of trading
.
In 2019, the company's total debt reached 2.

Aramco will continue to expand the Indian market

Regarding the future relationship between the two parties, Reliance Industries stated that Saudi Aramco will continue to be its preferred partner for investment in the Indian private sector
.
Saudi Aramco also said that the company will continue to look for investment opportunities in India

On November 18th, Saudi Aramco also signed an agreement with the Indian Oil and Natural Gas Corporation (ONGC).
The two energy companies will sign long-term supply contracts for crude oil trading, purification, and trading of petrochemical products
.
The two parties will also strengthen cooperation through a series of subsidiary companies