Saudi Aramco and Rongsheng establish joint venture to seek new downstream opportunities

Saudi Aramco, one of the world's leading integrated energy and chemicals companies, is considering a joint venture with Chinese partner Rongsheng Petrochemical at the Saudi Aramco Jubail Refinery Company (SASREF) and investments in the Saudi and Chinese petrochemicals sectors with Rongsheng.

The company recently signed a cooperation framework agreement, and it is expected that Rongsheng may acquire 50% of SASREF's equity. The agreement also lays the foundation for SASREF to develop a liquid chemicals expansion project. In addition, Aramco may acquire a 50% stake in Rongsheng subsidiary Ningbo Zhongjin Petrochemical Co., Ltd. (ZJPC) and participate in ZJPC's expansion project.

Mohammed Y. Al Qahtani, President of Saudi Aramco Downstream, said:"These discussions highlight our ambition to advance our liquid chemicals strategy in the Kingdom of Saudi Arabia and China with our strategic partner Rongsheng. Building on our existing relationship, we aim to advance our expansion in key regions and attract new investment into the Saudi downstream industry."

In July 2023, Aramco acquired a 10% stake in Rongsheng through its subsidiary Aramco Overseas BV in the Netherlands. Rongsheng Group, in turn, owns 100% of ZJPC, which operates an aromatics production base and has interests in a joint venture that produces purified terephthalic acid.