Aramco and Rongsheng Petrochemical Sign a Framework Agreement to Advance SASREF Expansion

Aramco, one of the world's leading integrated energy and chemicals
companies, Aramco 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 SASREF
in Jubail, Kingdom of Saudi Arabia.
According to a press release
issued by Aramco today, the tripartite agreement outlines the
cooperation mechanism and planning for the project's design and
development. The project aims to expand SASREF's refining and
petrochemical capabilities while fostering international collaboration.

Aramco Downstream President Mohammed Y. Al Qahtani said, "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 foster closer collaboration
with key partners and progress 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."
Rongsheng Petrochemical Chairman Li Shuirong 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. 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."
It 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 and significant investments in the Saudi and
Chinese petrochemical sectors. Preliminary documentation relating to the
Development Framework Agreement was signed in September.
The
release disclosed that the SASREF expansion project is located in Jubail
Industrial City, which is along the Arabian Gulf coast in Saudi
Arabia's Eastern Province. The city has a well-developed infrastructure
and strategic geographical advantages.
The project, which is
currently in the PREFEED stage, envisages the construction of
large-scale steam crackers and the integration of associated downstream
derivatives into the existing SASREF complex, enhancing its ability to
meet the growing demand for high-quality petrochemical products.