Rongsheng Petrochemical and Saudi Aramco deepen cooperation to seek a new chapter in global refining and chemical industry

Recently, China's private refining giant Rongsheng Petrochemical announced the signing of a number of cooperation agreements with Saudi Aramco and its wholly-owned subsidiary Jubail Refining and Chemical Company (SASREF). This series of measures indicates that the two parties will carry out in-depth cooperation in the global refining and chemical industry to jointly create large-scale integrated projects with global competitive advantages.

SASREF Refinery, an important petrochemical industry town located in the port of Jubail, Saudi Arabia, has been carrying the important task of primary processing of crude oil since its commercial production in 1985. At present, the refinery has a crude oil refining capacity of 305000 barrels per day, covering 2 sets of atmospheric and vacuum units, hydrocracking units, continuous reforming units, etc. The main products include naphtha, gasoline, diesel, etc., which are exported to domestic and foreign markets. In 2019, Saudi Aramco's wholly-owned acquisition of SASREF has injected strong momentum into its future growth.

Rongsheng Petrochemical, as a leading Chinese refining and chemical company that is actively going to sea, operates the world's largest monomer refinery-Zhejiang Petrochemical 40 million-ton refining and chemical integration project. The company not only occupies an important position in the fields of polyester and new energy materials, but also is the world's largest manufacturer of PX, PTA and other chemical products. In this partnership with Saudi Aramco, Rongsheng Petrochemical intends to acquire a 50% stake in SASREF and plans to increase capacity and product flexibility through expansion. This move will make full use of Rongsheng Petrochemical's rich experience in operation and management, enable efficient construction and long-term stable operation of the project, and further expand SASREF's refining and petrochemical production capacity.

According to the

market view, this strategic layout of Rongsheng Petrochemical will greatly enhance its global competitiveness. The SASREF refinery is adjacent to the Persian Gulf region, and future products can flexibly cover Europe, Africa and South Asia, effectively solving raw material supply problems, and is expected to open up a global sales network. In addition, the Jubail Industrial Zone, where SASREF is located, provides a series of preferential measures, including cheap energy supply and preferential labor policies, which provide a strong guarantee for the cost advantage of the project.

Another highlight of the

cooperation between the two parties is Saudi Aramco's potential equity acquisition of Ningbo Zhongjin Petrochemical Co., Ltd. (Zhongjin Petrochemical), a wholly-owned subsidiary of Rongsheng Petrochemical. The two parties will jointly develop the upgrade and expansion project of the existing equipment of CICC Petrochemical, and promote the development of Rongsheng New Materials (Zhoushan) project, further extend the industrial chain, and develop the fields of fine chemicals and new materials. In the future, Saudi Aramco will become an important investor in Sinopec and Rongsheng New Materials (Zhoushan) to jointly support the investment, construction and operation financing of the project.

in the context of China's "One Belt, One Road" initiative and Saudi Arabia's "Vision 2030", the in-depth cooperation between Rongsheng Petrochemical and Saudi Aramco will not only bring more sufficient, stable and competitive petrochemical raw materials and advanced chemical technology to both parties, It will also consolidate the competitive advantages of both parties in the global petrochemical field. This transnational cooperation will make full use of the market and policy advantages of the two countries to create a global refining and chemical integration project across the two countries, and jointly realize the global strategic layout and common development vision.

Looking to the future, the cooperation between Rongsheng Petrochemical and Saudi Aramco will undoubtedly inject new vitality into the global refining and chemical industry. The two sides will work hand in hand to jointly promote the transformation, upgrading and high-quality development of the petrochemical industry, and contribute more to the prosperity of the global economy.