Aramco affiliate Saudi Aramco Jubail Refinery Company (SASREF) and Rongsheng Petrochemical have signed a development framework agreement in Beijing, China, that paves the way for an expansion project at SASREF in Jubail, Saudi Arabia.
The 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.
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.”
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.
Aramco and Rongsheng Petrochemical sign new development framework
