Saudi Aramco and Rongsheng Petrochemical deepen strategic cooperation, SASREF expansion project made new progress

recently, the strategic cooperation between Saudi Aramco and Rongsheng Petrochemical has taken an important step. In Beijing, Saudi Aramco and its affiliate, Saudi Aramco Jubail Refining & Chemical Company (SASREF), signed a development framework agreement with an affiliate of Rongsheng Petrochemical. The agreement aims to advance the implementation of the SASREF expansion project, further expand its refining and petrochemical production capacity, and deepen international cooperation between the two parties.

President of Saudi Aramco's downstream business, Mohammed Al-Qatani, said, "Saudi Aramco and Rongsheng Petrochemical are working together to create more value for stakeholders. The signing of this development framework agreement not only reflects Saudi Aramco's determination to strengthen cooperation with key partners, but also highlights the attractiveness of the Saudi petrochemical downstream industry to overseas investors."

Reviewing the history of cooperation between the two parties, as early as March 2023, Saudi Aramco and Rongsheng Petrochemical established a strategic cooperative relationship and signed a strategic cooperation agreement based on the principle of "complementary advantages and win-win development. In January 2024, the two parties further signed a memorandum of understanding, announcing their intention to acquire each other's equity in the entity company and promote the expansion of production capacity. The signing of the development framework agreement marks the concrete landing of cooperation between the two sides.

Located in the Saudi port of Jubail,

SASREF is one of the largest petrochemical industrial zones in the world. The company has a crude oil refining capacity of 305000 barrels per day (about 15 million tons per year). Its main products include naphtha, gasoline, kerosene, diesel, etc., which are sold to domestic and foreign markets. After the completion of the expansion project, SASREF will use the intermediate products of existing processing units and local cheap ethane as raw materials. The products will cover the entire industrial value chain of oil and chemical products, and will be sold to the Middle East, South Asia, Europe, Africa and other regions.

In addition, Saudi Aramco also plans to make a potential acquisition of not more than 50% of the equity of Ningbo Zhongjin Petrochemical Co., Ltd. (CICC), a wholly-owned subsidiary of Rongsheng Petrochemical, and jointly develop the upgrade and expansion of CICC's existing equipment. In the future, the two sides will also develop the new downstream Rongsheng new materials (Zhoushan) project, promote the extension of the industrial chain to the downstream, and develop fine chemicals and new chemical materials.

Saudi Aramco, as an international energy giant, has been committed to the development of downstream chemicals and new materials business in recent years, accelerating the integration of upstream and downstream of the industrial chain. Rongsheng Petrochemical adheres to the concept of "reducing oil and increasing chemical", implements the two-way development strategy of "one vertical and one horizontal", and actively builds a high-end and diversified new material platform. The strategic layout of the two sides is highly compatible, laying a solid foundation for future cooperation.

Rongsheng Petrochemical has rich experience in project operation management, which will provide strong support for the efficient construction and long-term stable operation of SASREF expansion project. With the deepening of cooperation between the two sides, SASREF is expected to become a common strategic growth platform for Saudi Aramco and Rongsheng Petrochemical, injecting new vitality into the global petrochemical market.