Saudi Aramco is considering selling several gas-fired power plants as part of a larger effort to increase profits and generate cash. According to sources familiar with the plan, the sale of up to five plants that supply energy to refineries could bring in around $4 billion. This move comes as the Saudi government urges Aramco to boost returns and maintain high payouts to the state.
In addition to power plants, the company may also look to divest other assets such as housing compounds, pipelines, and port infrastructure. These potential sales are part of Aramco’s broader strategy to streamline operations and cut costs amid lower oil prices, which have led the company to reduce its dividend payouts by almost a third this year.
Aramco, which remains the primary source of Saudi government revenue, owns a majority stake in 18 power plants and related infrastructure. New facilities, including the Tanajib Gas Plant, are set to begin operations soon. Local utility firms may show interest in acquiring the assets, although no timeline for the sales has been disclosed.
The asset sale initiative aligns with Saudi Arabia’s wider economic diversification plans, which aim to reduce reliance on oil. Despite significant income from Aramco, the country faces a budget deficit and is investing heavily in major domestic projects such as Expo 2030 and the FIFA World Cup 2034. Aramco’s recent $5 billion bond sale further highlights its ongoing search for additional funding sources.
These steps reflect the pressures facing the company and the broader Saudi economy, as both adapt to fluctuating oil revenues and ambitious development goals.