Aramco mulls Rongsheng JV, eyes China downstream deals
DHAHRAN, April 27, 2024
Saudi oil giant Aramco has announced plans to set up a new joint venture with Chinese group Rongsheng Petrochemical through its major refinery unit Sasref (Saudi Aramco Jubail Refinery Company).
One of the world’s leading integrated energy and chemicals companies, Sasref aims to make significant investments in the Saudi and Chinese petrochemical sectors, in partnership with Rongsheng.
The company had recently signed a cooperation framework agreement that envisions Rongsheng’s potential acquisition of a 50% stake in Sasref.
The agreement also lays the groundwork for the development of a liquids-to-chemicals expansion project at the Sasref in addition to Aramco’s potential acquisition of a 50% stake in Rongsheng affiliate Ningbo Zhongjin Petrochemical Company (ZJPC) and participation in ZJPC’s expansion project.
In July, Aramco had acquired a 10% interest in Rongsheng through its subsidiary Aramco Overseas Company BV, based in the Netherlands.
Rongsheng in turn owns a 100% equity interest in ZJPC, which operates an aromatics production complex and has an interest in a joint venture that produces purified terephthalic acid.
Mohammed Y. Al Qahtani, Aramco Downstream President, 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."
"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," he added.
