Lubrev Secures 20-Year Diesel Supply Agreement with Saudi Aramco
YANBU, SAUDI ARABIA – Lubrev has finalized a 20-year agreement with Saudi Aramco to supply up to 6,500 barrels per day of low-sulfur diesel from Aramco’s Yanbu refinery, commencing September 29, 2025. the long-term contract, disclosed in a statement to Tadawul, aims to bolster Lubrev’s customer base and improve profit margins on secondary products.
This agreement marks a significant step for Lubrev, positioning the company for sustained growth through a guaranteed supply of a key fuel component.The deal’s longevity provides stability in a volatile market, while the potential for renewal offers continued opportunity. though the financial impact is currently difficult to quantify due to market price fluctuations, Lubrev anticipates positive contributions beginning in the fourth quarter of 2025.
The pricing for the diesel will be persistent by an equation linked to prevailing market rates. saudi Aramco holds a 70% stake in Lubrev, classifying it as a related party to the agreement. Both parties retain the option to terminate the contract according to the terms outlined within it, but the initial term extends through 2045 with potential for mutual extension.
Lubrev stated the agreement is expected to enhance profitability through increased sales volume and optimized sourcing of diesel, a critical component in its product portfolio.
