Aramco inks deals with China’s Rongsheng and Hengli

The deals include preliminary documentation relating to a Development Framework Agreement with Rongsheng Petrochemical (Rongsheng) and a Strategic Cooperation Agreement with Hengli Group.

The agreement with Rongsheng is connected to the potential joint development of an expansion of Saudi Aramco Jubail Refinery Company (SASREF) facilities. It follows an announcement in April that Aramco and Rongsheng 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.

This includes Rongsheng’s potential acquisition of a 50% stake in SASREF, the development of a liquids-to-chemicals expansion project at SASREF, Aramco’s potential acquisition of a 50% stake in Rongsheng affiliate Ningbo Zhongjin Petrochemical, and participation in its expansion project.

The agreement with Hengli Group is related to Aramco’s potential acquisition of a 10% stake in Hengli Petrochemical, following the signing of a Memorandum of Understanding in April 2024 to advance its liquids-to-chemicals program and secure long-term crude oil supply agreements. 

Mohammed Y. Al Qahtani, Aramco Downstream President, said: “The signing of these agreements reaffirms our belief in the long-term, mutual benefits that can arise from Aramco’s close collaboration with our Chinese partners. China is an important country in our global downstream growth strategy, and we look forward to building on a relationship that spans more than three decades to unlock new opportunities in this crucial market.

“These agreements reflect our collective intention to elevate our relationships in vital sectors to advance our downstream objectives, contribute to both China’s and Saudi Arabia’s vibrant energy and petrochemicals sectors, and help develop future technology solutions.”