Aramco and Rongsheng unveil plans to boost SASREF operations

Aramco, one of the world’s largest integrated energy and chemicals companies, has signed a Development Framework Agreement with its affiliate, Saudi Aramco Jubail Refinery Company (SASREF), and Rongsheng Petrochemical Co. Ltd. The agreement was formalised during a meeting in Beijing, China, and marks a significant step toward expanding SASREF’s refining and petrochemical operations in Jubail, Saudi Arabia.

The agreement outlines a roadmap for cooperation in the design and development phases of the SASREF expansion project. This venture aims to bolster SASREF’s capabilities, enhancing its ability to produce high-quality petrochemical products while fostering cross-border collaboration between Saudi Arabia and China.

Aramco Downstream President Mohammed Y. Al Qahtani highlighted the strategic significance of the partnership, noting that the collaboration underscores Aramco’s commitment to expanding its downstream operations domestically and internationally. He emphasised the agreement’s role in attracting foreign investment to Saudi Arabia’s downstream sector, aligning with Aramco’s broader goals.

Rongsheng Petrochemical Chairman Li Shuirong reiterated the strategic importance of the agreement, positioning it as a critical step in the company’s involvement in Saudi Arabia’s energy landscape. He praised Saudi Arabia’s resource abundance and market potential, describing the partnership as a vital component of both China’s Belt and Road Initiative and Saudi Arabia’s Vision 2030 economic diversification programme.

This partnership builds on an earlier Cooperation Framework Agreement signed in April, which outlined plans for a joint venture in SASREF and mutual investments in Saudi and Chinese petrochemical sectors. Preliminary documentation for the current agreement was finalised in September, signalling the commitment of all parties to advancing the project.

The SASREF expansion project, located in Jubail Industrial City along Saudi Arabia’s Arabian Gulf coast, is strategically positioned to benefit from the region’s robust infrastructure and logistical advantages. Currently in the pre-front-end engineering and design (PREFEED) stage, the project aims to integrate large-scale steam crackers with associated downstream derivatives into SASREF’s existing operations.

When completed, the expansion will enhance SASREF’s capacity to meet growing global demand for petrochemical products, further solidifying Saudi Arabia’s position as a key player in the global petrochemical market. The project reflects the alignment of Saudi Arabia’s Vision 2030 goals with China’s economic initiatives, underscoring the potential of international partnerships to drive sustainable growth.