Aramco, through its subsidiary Aramco Overseas Company, has acquired a 10% stake in Rongsheng Petrochemical (Rongsheng) for 24.6bn yuan ($3.4bn).
The deal, which was announced in March 2023, forms part of Aramco’s efforts to expand its downstream presence in China.
The transaction includes the supply of 480,000 barrels per day (bopd) of crude from Saudi Arabia to the Rongsheng affiliate Zhejiang Petroleum and Chemical (ZPC)-owned integrated refining and chemicals complex in China.
Aramco downstream president Mohammed Al Qahtani said: “Our strategic partnership with Rongsheng advances Aramco’s liquids to chemicals strategy while growing our presence in China and showcases our importance as a reliable supplier of crude oil. This key acquisition is an important part of Aramco’s long-term growth strategy, expanding our presence in a vital market.”
Rongsheng owns a 51% stake in ZPC. The complex has a processing capacity of 800,000bopd and production capacity of 4.2 million metric tonnes (mmt) of ethylene per year.
Rongsheng chairman Li Shuirong said: “The completion of this transaction marks the entry of Rongsheng and Aramco into a new era together, and also signifies an important step forward in Rongsheng's internationalisation strategy.”
In March 2023, Aramco and its Chinese joint venture (JV) partners NORINCO Group and Panjin Xincheng Industrial Group agreed to build an oil refinery and petrochemical plant in north-east China.
Planned for the city of Panjin in Liaoning province, the facility will comprise a 300,000bopd oil refinery and a petrochemical plant with an annual production capacity of 1.65mmt of ethylene and two million metric tonnes of paraxylene.
