Aramco, an integrated energy and chemicals company, along with its affiliate Saudi Aramco Jubail Refinery Company (SASREF) and Rongsheng Petrochemical, have signed a development framework agreement in Beijing, China.
This agreement marks a significant step towards the SASREF expansion project in Jubail, Saudi Arabia, which aims to boost refining and petrochemical capabilities. It outlines the cooperation mechanism and planning for the project's design and development.
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 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.”
The agreement aims to enhance SASREF's capabilities while promoting international collaboration. This follows an earlier announcement in April regarding a cooperation framework agreement for a joint venture in SASREF and investments in the Saudi and Chinese petrochemical sectors.
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.”
The project, currently in the pre-FEED stage, includes the construction of large-scale steam crackers and integration of associated downstream derivatives into the existing SASREF complex.
The SASREF expansion project benefits from strategic geographical advantages and well-developed infrastructure.
This development is expected to enhance SASREF's ability to meet the growing demand for high-quality petrochemical products.
