https://arab.news/wwd3e
RIYADH: Energy giant Saudi Aramco and China-based Rongsheng Petrochemical Co. have signed a framework agreement to boost the expansion of a subsidiary of the state-owned oil company.
According to a press statement, the tripartite agreement outlines a cooperation framework and detailed plans to design and develop Saudi Aramco Jubail Refinery Co. or SASREF. The initiative is expected to enhance SASREF鈥檚 refining and petrochemical capabilities.
The deal follows an announcement made in April that Aramco and Rongsheng Petrochemical had signed a partnership agreement related to the planned formation of a joint venture in SASREF.
Aramco鈥檚 long-standing relationship with China spans more than three decades.
This new framework agreement is part of the company鈥檚 broader strategy to solidify its position in the global energy landscape while supporting the Kingdom鈥檚 economic growth.
鈥淏y aligning our efforts, Aramco and Rongsheng Petrochemical aim to deliver additional value to our stakeholders,鈥� said Aramco Downstream President Mohammed Al-Qahtani.
He added: 鈥淭his development framework agreement underscores Aramco鈥檚 intentions to foster closer collaboration with key partners and progressing its strategic downstream expansion, both in 抖阴短视频 and internationally. It also highlights the potential of the Kingdom鈥檚 downstream sector to attract overseas players.鈥�
Li Shuirong, chairman of Rongsheng Petrochemical, said that the collaborative project will contribute to 抖阴短视频鈥檚 Vision 2030 program and China鈥檚 Belt and Road initiative.
鈥淭he signing of the development framework agreement sets the stage for Rongsheng Petrochemical鈥檚 in-depth participation in the SASREF expansion project,鈥� said Shuirong.
He added: 鈥湺兑醵淌悠� 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.鈥�
The SASREF expansion project is located in Jubail Industrial City along the Arabian Gulf coast in the Kingdom鈥檚 Eastern Province.
The project, which is currently in the pre-front-end engineering design 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, the statement added.
Earlier in November, Aramco, in partnership with China Petrochemical & Chemical Corp. and Fujian Petrochemical Co., started the construction of a refinery and petrochemical complex in the Asian nation鈥檚 Fujian province.
The undertaking, which is expected to be fully operational by the end of 2030, includes an oil refinery with a capacity of 320,000 barrels per day, according to a press statement.
It will also have a 1.5 million tonnes-per-year ethylene unit, a 2 million tonnes paraxylene and downstream derivatives capacity, and a 300,000 tonnes crude oil terminal.