Aramco, one of the world’s leading integrated energy and chemicals companies, is exploring the formation of a joint venture in the Saudi Aramco Jubail Refinery Company (SASREF) with Chinese partner Rongsheng Petrochemical (Rongsheng).
According to the statement, “Aramco is also discussing significant investments in the Saudi and Chinese petrochemical sectors, in partnership with Rongsheng.”
Recently, the company signed a cooperation framework agreement that envisions Rongsheng’s potential acquisition of a 50 percent stake in SASREF.
The agreement also lays the groundwork for the development of a liquids-to-chemicals expansion project at SASREF, in addition to Aramco’s potential acquisition of a 50 percent stake in Rongsheng affiliate Ningbo Zhongjin Petrochemical (ZJPC) and participation in ZJPC’s expansion project.
Mohammed Y. Al Qahtani, Aramco Downstream President, said that, “These discussions highlight our ambition to advance our liquids-to-chemicals strategy with strategic partner Rongsheng, both in the Kingdom of Saudi Arabia and China.”
“In building on our existing relationship, we aim to advance our expansion in a key geography and attract new investment to the Saudi downstream sector,” Al Qahtani further added.
In 2023, Aramco acquired a 10 percent interest in Rongsheng through its subsidiary Aramco Overseas Company BV, based in the Netherlands. Rongsheng in turn owns a 100 percent equity interest in ZJPC, which operates an aromatics production complex, and has an interest in a joint venture that produces purified terephthalic acid.
Recently, Aramco awarded engineering, procurement, and construction (EPC) contracts worth $7.7 billion for a major expansion of its Fadhili Gas Plant in the Eastern Province of Saudi Arabia.
