Aramco, Rongsheng forge stronger ties with new ventures
Saudi Aramco, a global leader in integrated energy and chemicals based in Saudi Arabia, is poised to deepen its international footprint through a strategic partnership with China’s Rongsheng Petrochemical Co. Ltd. The collaboration focuses on significant ventures within Saudi Arabia and China, aiming to strengthen Aramco’s position in both markets.
Under a newly signed cooperation framework agreement, Rongsheng is set to acquire a 50% stake in the Saudi Aramco Jubail Refinery Company (SASREF). This partnership will also catalyse the development of a liquids-to-chemicals expansion project at SASREF, demonstrating Aramco’s commitment to enhancing its chemicals strategy.
Further enhancing this bilateral cooperation, Aramco plans to acquire a 50% stake in Rongsheng’s affiliate, Ningbo Zhongjin Petrochemical Co. Ltd. (ZJPC), and participate in ZJPC’s forthcoming expansion projects. ZJPC, known for its aromatic production complex and involvement in a joint venture that produces purified terephthalic acid, represents a critical element in Aramco’s strategy to integrate deeper into the global petrochemical sector.
Mohammed Y. Al Qahtani, Aramco’s Downstream president, emphasised the strategic importance of this partnership. “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,” said Al Qahtani.
The relationship between Aramco and Rongsheng is not new. In July 2023, Aramco, through its subsidiary Aramco Overseas Company BV, acquired a 10% interest in Rongsheng, marking the beginning of a significant synergistic relationship that leverages both companies’ strengths across key global markets.
This expanding alliance highlights a shared vision to innovate within the energy sector, promising to bring new vitality to the Saudi and Chinese economies while positioning both Aramco and Rongsheng at the forefront of the industry’s transformation.
