Aramco And Rongsheng Petrochemical Sign Development Framework Agreement For SASREF Expansion In Saudi Arabia

Aramco, a major player in the global energy and chemicals sector, has entered into a Development Framework Agreement with its affiliate Saudi Aramco Jubail Refinery Company (SASREF) and Rongsheng Petrochemical Co. Ltd. The agreement, signed in Beijing, China, aims to expand SASREF's operations in Jubail, Saudi Arabia. This collaboration focuses on enhancing refining and petrochemical capabilities while promoting international partnerships.

The agreement outlines the cooperation mechanism for designing and developing the project. Mohammed Y. Al Qahtani, Aramco Downstream President, stated: "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."

Rongsheng Petrochemical Chairman Li Shuirong commented on the agreement's significance: "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." He emphasised that this partnership will contribute to China's Belt and Road Initiative and Saudi Arabia's Vision 2030.

The SASREF expansion is situated in Jubail Industrial City along Saudi Arabia's Eastern Province coast. This location offers strategic advantages due to its developed infrastructure. The project is currently in the PREFEED stage, focusing on constructing large-scale steam crackers and integrating downstream derivatives into SASREF's existing complex.

This initiative follows an April announcement where Aramco and Rongsheng Petrochemical agreed on a Cooperation Framework Agreement for forming a joint venture at SASREF. Significant investments are planned for both Saudi Arabian and Chinese petrochemical sectors as part of this collaboration.

The project's goal is to boost SASREF's capacity to meet increasing demand for high-quality petrochemical products. It highlights the potential of Saudi Arabia's downstream sector to attract international players, reinforcing strategic ties between involved parties.

Preliminary documentation for this development was signed in September. The agreement marks a step forward in fostering international cooperation within the energy sector while supporting economic growth initiatives like Vision 2030.

With inputs from SPA