English
Rongsheng Petrochemical and Aramco sign a Framework Agreement to advance SASREF expansion
2024.11.21
Summary
- Development Framework Agreement paves way for major petrochemicals project
- Collaboration builds on existing relationship and positions SASREF as a strategic growth platform
Signing of the agreemen
BEIJING, 19 November 2024 - Rongsheng Petrochemicals (Singapore) Pte Ltd, a wholly-owned subsidiary of Rongsheng Petrochemicals Company Limited (‘Rongsheng Petrochemicals’), has signed a Development Framework Agreement (‘DFA’) with Saudi Aramco, one of the world's leading integrated energy and chemical companies, and its subsidiary, Saudi Aramco Jubail Refining and Chemical Company (’ SASREF"), signed a Development Framework Agreement in Beijing, China, paving the way for the SASREF expansion project in Jubail, Kingdom of Saudi Arabia.
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.
(At the signing ceremony, standing (from left): Vice President of Rongsheng Group and President of Rongsheng New Materials Zheng Guodong, Chairman of Rongsheng Group Li Shuirong, Aramco Downstream President Mohammed Y. Al Qahtani, Aramco Executive Vice President of Products & Customers Yasser Mufti. Sitting (from left): Vice Chairman of Rongsheng Group and CEO of Rongsheng Petrochemical Xiang Jiongjiong, President & CEO of SASREF Khalid Al-Harthi, Aramco Vice President of LTC Program Development Fahad Al Sahali.)
Mohammed Y. Al Qahtani, Aramco Downstream President, 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 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.”
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. 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.”
Win-Win Cooperation
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, 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.
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