https://arab.news/6tyxh
RIYADH: Saudi-Chinese investments are set to strengthen as Aramco explores a joint venture with Rongsheng Petrochemical Co. to advance its liquids-to-chemicals strategy.
According to a press statement, this joint venture is expected to be established in Saudi Aramco Jubail Refinery Co., also known as SASREF.
Located in Jubail Industrial City within the Kingdom, the facility currently processes crude oil into petroleum products with a production capacity of 305,000 barrels per day.
Rongsheng recently signed a cooperation framework agreement to explore the potential acquisition of a 50 percent stake in SASREF.
The agreement also lays the groundwork for the development of a liquids-to-chemicals expansion project at SASREF. Additionally, the press statement mentioned Aramco’s potential acquisition of a 50 percent stake in Rongsheng affiliate Ningbo Zhongjin Petrochemical Co.
Aramco Downstream President, Mohammed Y. Al-Qahtani, said: “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.”
He added: “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.”
In July 2023, Aramco acquired a 10 percent interest in Rongsheng through its subsidiary Aramco Overseas Co., based in the Netherlands.
Rongsheng, in turn, holds a 100 percent equity interest in ZJPC, which operates an aromatics production complex and expresses interest in a joint venture focused on producing purified terephthalic acid.
Earlier in April, Saudi Aramco disclosed that it is in talks to acquire a 10 percent stake in China’s Hengli Petrochemical, aiming to strengthen Aramco’s growing downstream presence in the Asian country.
In a statement, Saudi Aramco mentioned signing a memorandum of understanding for the proposed transaction, pending regulatory approvals.