Aramco, Rongsheng Petrochemical Co. sign agreement to expand SASREF

Aramco, its affiliate Saudi Aramco Jubail Refinery Company (SASREF), and an affiliate of Rongsheng Petrochemical Co. Ltd. (Rongsheng Petrochemical) have signed a Development Framework Agreement in Beijing, China, that paves the way for an expansion project at Saudi Aramco Jubail Refinery Company (SASREF) in Jubail. 

The tripartite agreement outlines the cooperation mechanism and planning relating to the design and development of the project, which aims to expand SASREF’s refining and petrochemical capabilities while fostering international collaboration.

By aligning our efforts, Aramco and Rongsheng Petrochemical aim to deliver additional value to our stakeholders. This Development Framework Agreement underscores Aramco’s intentions to fostering closer collaboration with key partners and progressing its strategic downstream expansion, both in the Kingdom of Saudi Arabia and internationally. It also highlights the potential of the Kingdom’s downstream sector to attract overseas players.
— Mohammed Y. Al Qahtani, Aramco Downstream president

Li Shuirong, Rongsheng Petrochemical Chairman, said the signing of the Development Framework Agreement “sets the stage for Rongsheng Petrochemical's in-depth participation in the SASREF expansion project. 

“Saudi Arabia has abundant energy resources and significant market potential, and Rongsheng Petrochemical will bring strong momentum to the partnership through our excellent operation and management capabilities and market competitiveness,” added Shuirong. “This collaborative project not only has important strategic value for the future development of both companies but will also make contributions to China's Belt and Road Initiative and Saudi Arabia's Vision 2030.”

This follows an announcement in April that Aramco and Rongsheng Petrochemical had signed a Cooperation Framework Agreement relating to the planned formation of a joint venture in SASREF, as well as significant investments in the Saudi and Chinese petrochemical sectors. Preliminary documentation relating to the Development Framework Agreement was signed in September. 

The SASREF expansion project is located in Jubail Industrial City along the Arabian Gulf coast in Saudi Arabia’s Eastern Province. The city has well-developed infrastructure and strategic geographical advantages. 

The project, which is currently in the PREFEED stage, envisages construction of large-scale steam crackers and the integration of associated downstream derivatives into the existing SASREF complex, enhancing its ability to meet growing demand for high-quality petrochemical products.

Photo caption for top photo: At the signing ceremony, standing (from left): Zheng Guodong, vice president of Rongsheng Group and president of Rongsheng New Materials; Li Shuirong, chairman of Rongsheng Group; Mohammed Y. Al Qahtani, Aramco Downstream president; and Yasser M. Mufti, Aramco executive vice president of Products and Customers. Sitting (from left): Xiang Jiongjiong, vice chairman of Rongsheng Group and CEO of Rongsheng Petrochemical; Khalid A. Al-Harthi, president & CEO of SASREF; and Fahad A. Al Sahali, Aramco vice president of LTC Program Development.