Saudi Arabian energy giant Aramco is considering establishing a joint venture (JV) with Rongsheng Petrochemical to advance its liquids-to-chemicals strategy.
The collaboration is expected to be centred around the Saudi Aramco Jubail Refinery Company (SASREF), with China’s Rongsheng Petrochemical becoming a partner.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataLocated in Jubail Industrial City within Saudi Arabia, the SASREF facility has a production capacity of 305,000 barrels per day (bpd), converting crude oil into a range of petroleum products.
Aramco recently signed a cooperation framework agreement that outlines Rongsheng’s potential acquisition of a 50% stake in SASREF.
This agreement also sets the stage for the development of a liquids-to-chemicals expansion project at SASREF.
Additionally, it includes Aramco’s potential acquisition of a 50% stake in Rongsheng affiliate Ningbo Zhongjin Petrochemical (ZJPC) and participation in ZJPC’s expansion project.
In July 2023, Aramco, through its subsidiary Aramco Overseas Company based in the Netherlands, acquired a 10% interest in Rongsheng.
Rongsheng holds a 100% equity interest in ZJPC, which operates an aromatics production complex and has a stake in a JV producing purified terephthalic acid.
Aramco downstream president Mohammed Y Al Qahtani said: “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.”
Last week, Aramco confirmed that it is in discussions to acquire a 10% equity stake in the petrochemical unit of China’s Hengli Group.
The Hengli Petrochemical refinery and integrated chemicals complex in Liaoning Province has a capacity of 400,000bpd.
The company’s pursuit of strategic partnerships is not limited to Hengli Petrochemical and Rongsheng; it has also signed memorandums of understanding with Jiangsu Eastern Shenghong and Shandong Yulong Petrochemical.
