Symbiotic relationship between Japan and KSA goes beyond oil

Saudi Aramco stores oil in three main locations: Rotterdam in the Netherlands for the European market; Sidi Kerir in Egypt for the Mediterranean market; and since early 2011, Okinawa in Japan for the Asia-Pacific market. (AFP)
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Updated 14 January 2020

Symbiotic relationship between Japan and KSA goes beyond oil

  • Saudi Arabia supplies Japan with liquefied petroleum gas (LPG), which is a mixture of propane and butane used for cooking and as a transport fuel. It is also an important feedstock for the petrochemical industry
  • In response to a major earthquake in Japan in 2011, the Saudi government donated products equivalent to $20 million through Saudi Aramco

Japan is the world’s fourth-largest crude oil importer, at an average of around 3 million barrels per day. It imports a third of its crude oil from Saudi Arabia. Japan has for decades been the largest crude oil market in Asia for the Kingdom.
Saudi Aramco stores oil in three main locations: Rotterdam in the Netherlands for the European market; Sidi Kerir in Egypt for the Mediterranean market; and since early 2011, Okinawa in Japan for the Asia-Pacific market.
Saudi Aramco has stored crude in Okinawa for commercial purposes in exchange for prioritizing supply to Japan in the event of an emergency. This is extremely important for Japan’s energy security, specially during escalating geopolitical tensions.               
Saudi Aramco started by storing around 4 million barrels of crude oil in the Okinawa facilities. In 2016, the company and Japan agreed on a 2-million-barrel expansion of the crude storage capacity in Okinawa. In return, Japan continued to get a priority claim on the stockpiles in case of an emergency.
Later, it was agreed to raise the storage capacity in Okinawa to 8.2 million barrels. In December 2019, Japan renewed its deal with Saudi Aramco for crude oil storage in Okinawa for another three years.
The Kingdom also supplies Japan with liquefied petroleum gas (LPG), which is a mixture of propane and butane used for cooking and as a transport fuel. It is also an important feedstock for the petrochemical industry.
In response to a major earthquake in Japan in 2011, the Saudi government donated products equivalent to $20 million through Saudi Aramco. The two countries agreed to establish the Saudi LPG Emergency Relief Fund within the Japan Gas Association to distribute aid to the region affected by the earthquake.

 


Aramco international listing ‘still on the cards’: Saudi finance minister

Updated 39 min 10 sec ago

Aramco international listing ‘still on the cards’: Saudi finance minister

  • The minister said that he was “very confident” that the Saudi economy was picking up speed
  • He said that international investors had responded positively to ongoing reforms in the Kingdom

LONDON: Saudi Finance Minister Mohammed Al-Jadaan said that an international listing of Saudi Aramco was “still on the cards” but likely won’t happen soon.
He made the disclosure in an interview with Bloomberg News at the World Economic Forum’s annual meeting in Davos, Switzerland on Wednesday.
The minister also said that he was “very confident” that the Saudi economy was picking up speed, as the Kingdom successfully completed a $5 billion bond sale this week after receiving orders for four times as much.
“Yesterday showed very clearly that demand for Saudi credit is very high and very healthy. We are very pleased not only with the level of debt but also the pricing,” he said. “Demand is very positive. We are starting seeing results of Vision 2030. The numbers are proving that reform is working. We are basically cashing on the successes.
The minister said that international investors had responded positively to ongoing reforms in the Kingdom.
“I think investors are focusing on fundamentals,” he said. “They see the growth they see the potential. We are seeing a growth in FDI, a growth in the number of applications for licenses. The confidence is back in a strong way.”