Saudi Aramco announced on Saturday its exploration of collaboration opportunities with Chinese partner Rongsheng Petrochemical Co. Ltd., signaling a potential joint venture in the Saudi Aramco Jubail Refinery Company (“SASREF”) and substantial investments in both Saudi and Chinese petrochemical sectors.
The oil giant disclosed the signing of a cooperation framework agreement, envisioning Rongsheng’s potential acquisition of a 50% stake in SASREF. Additionally, plans include the development of a liquids-to-chemicals expansion project at SASREF, alongside Aramco’s potential acquisition of a 50% stake in Rongsheng affiliate Ningbo Zhongjin Petrochemical Co. Ltd. (ZJPC) and participation in ZJPC’s expansion initiative.
Aramco Downstream President Mohammed Y. Al Qahtani emphasized the strategic importance of these discussions in advancing the liquids-to-chemicals strategy with Rongsheng, both in Saudi Arabia and China, aiming to bolster expansion efforts in key geographies and attract new investments to the Saudi downstream sector.
In July 2023, Aramco solidified its involvement by acquiring a 10% interest in Rongsheng through its subsidiary Aramco Overseas Company BV, laying the groundwork for further collaboration. Rongsheng, in turn, holds a 100% equity interest in ZJPC, which operates an aromatics production complex and holds a stake in a joint venture focused on purified terephthalic acid production.
