Saudi Aramco is moving forward with its collaboration with China’s Rongsheng Petrochemical Co. Ltd. (Rongsheng) to expand its liquids-to-chemicals project at the Saudi Aramco Jubail Refinery Company (SASREF).
During Chinese Premier Li Qiang’s recent visit to the Kingdom, Aramco and Rongsheng signed preliminary documents for a development framework agreement. This follows their April 2024 cooperation framework agreement, which outlines the potential formation of a joint venture in SASREF and significant investments in the petrochemical sectors of both Saudi Arabia and China.
The agreement includes Rongsheng’s potential acquisition of a 50% stake in SASREF, and Aramco’s proposed acquisition of a 50% stake in Rongsheng’s affiliate Ningbo Zhongjin Petrochemical Co. (ZJPC), along with investments in ZJPC’s expansion project.
Additionally, a strategic cooperation agreement has been signed with Hengli Group Co. to advance discussions on Aramco’s potential acquisition of a 10% stake in Hengli Petrochemical Co. This follows a memorandum of understanding (MoU) signed by the two companies in April 2024.