Saudi Aramco has announced its exploration of potential joint ventures and investment prospects in the Saudi Aramco Jubail Refinery (SASREF) with its Chinese partner, Rongsheng Petrochemical Company Limited. In a statement released on Saturday, Aramco revealed its intent to evaluate significant investment opportunities within the petrochemical sector in both Saudi Arabia and China in collaboration with Rongsheng. This strategic partnership aims to lay the groundwork for the development of the liquids-to-chemicals expansion project at SASREF, marking a significant step forward in enhancing the refinery’s capabilities.
As part of the agreement, Saudi Aramco is also considering the potential acquisition of a 50 percent stake in Ningbo Zhongjin Petrochemical Company Limited, a subsidiary of Rongsheng Company. This initiative underscores Aramco’s commitment to diversifying its portfolio and strengthening its presence within the Chinese market. Furthermore, Aramco’s participation in the expansion project of Ningbo Zhongjin Petrochemical Company Limited signifies its strategic alignment with Rongsheng’s growth trajectory.
The framework agreement for cooperation between Saudi Aramco and Rongsheng Company sets the stage for potential collaboration, with Rongsheng exploring the acquisition of a 50 percent stake in SASREF. This strategic move follows Aramco’s acquisition of a 10 percent stake in Rongsheng in July 2023 through its wholly owned subsidiary, Aramco Overseas, based in the Netherlands. Rongsheng, as the parent company, holds full ownership of Ningbo Zhongjin Petrochemical Co., Ltd., further solidifying the interconnectedness of these strategic partnerships in the global petrochemical landscape.
