The world’s largest oil and gas company, Saudi Aramco, has delayed its multi-billion-dollar petrochemical and liquified natural gas (LNG) projects to maintain cash flow for the paying of dividends, according to Bloomberg.
Aramco is scaling back plans to construct a $20 billion crude-to-chemicals plant at Yanbu in eastern Saudi Arabia. Furthermore, the company is currently reviewing initial plans made earlier in the year to buy 25% of Sempra Energy’s Texas LNG terminal.
The hesitation to proceed with these expensive plans comes with the obligation to pay out $75 billion annually in dividends.
This is not the first example of Aramco putting projects on hold, Aramco suspended a deal to build a $10 billion refining and petrochemicals complex in China. Despite this, Aramco said it was still committed to downstream investments in China.