A statement on the company's website said the new entity, formally established as Saudi Aramco Products Trading Company, will replace the Product Sales and Marketing Department (PSMD) in importing and exporting refined petroleum products, commonly known in the industry as “system balancing” of refined petroleum products.

Starting off with 80 employees, Aramco Trading’s role will be to support the parent company’s efforts to maximize downstream integration and generate further value by optimizing its growing global downstream presence.

The formation of Aramco Trading was first announced in February 2011.

Since then, the company has been quick off the blocks preparing to commence business, establishing internal risk management and counterparty business management systems in line with industry best practices.

Aramco Trading will represent the company’s interest in sales and purchases of refined petroleum products such as condensates, naphtha, gasoline, middle distillate fuels, fuel oil and residual products and bulk petrochemical products.

With energy demand expected to rise in the long term, the company continues its significant downstream capital program via investments through its subsidiaries, affiliates and joint ventures in Saudi Arabia and abroad. 

“The landscape for trading has shifted with evolving market dynamics, and that will bring both challenges and opportunities. Our company continues to be responsive and committed to balancing its system and create value through continuous market participation,” said Said A. Al-Hadrami, president and CEO of Aramco Trading.

Saudi Aramco Trading’s headquarters is based in Dhahran.