Saudi energy and chemicals giant Aramco, its affiliate Saudi Aramco Jubail Refinery Company (SASREF), and an affiliate of Chinese company Rongsheng Petrochemical announced signing a development framework agreement, paving the way for an expansion project at SASREF in Jubail, Saudi Arabia.
The tripartite agreement, signed in Beijing, outlines the cooperation mechanism and planning relating to the design and development of the project.
The pact is to expand SASREF’s refining and petrochemical capabilities, while fostering international collaboration.
Mohammed Y. Al Qahtani, Aramco Downstream President, said by aligning the efforts, Aramco and Rongsheng Petrochemical aim to deliver additional value to their stakeholders.
“The 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,” he said.
Li Shuirong, Rongsheng Petrochemical Chairman, said the agreement signing 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,” Shuirong said.
“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,” he added.
The development framework agreement follows the two companies signing 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.
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 pre-feed 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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