Saudi Gazette report

DHAHRAN — Saudi Aramco has announced agreements with major Chinese partners during the visit of a high-level Chinese delegation to Saudi Arabia. The delegation is led by Chinese Premier Li Changkang.

The new agreements will enhance the company’s continued contributions to China’s long-term energy security and development. China’s participation also supports Saudi Arabia’s economic growth and consolidates cooperation in developing new technology.

The agreements include preliminary documents on a development framework agreement with Rongsheng Petrochemical Co., Ltd. (Rongsheng), and a strategic cooperation agreement with Hengli Group Co., Ltd.

“The signing of these agreements reflects our belief in the long-term mutual benefits that can arise from close cooperation between Saudi Aramco and our Chinese partners,” said Mohammed Al-Qahtani, President of Refining, Chemicals and Marketing at Saudi Aramco.

“China is important to our global growth strategy in the refining, chemicals and marketing sector, so we look forward to strengthening the relationship that extends over more than three decades to unlock new opportunities in this important market.”

He stated that this step reflects the joint determination to advance our relations in vital sectors to enhance our goals in refining, chemicals, and marketing, and contribute to the thriving energy and petrochemical sectors in both China and Saudi Arabia, in addition to helping develop future technical solutions.

Aramco explained that the preliminary documents related to the framework agreement for development with Rongsheng Petrochemical Co., Ltd. (Rongsheng) relate to the possibility of joint development to expand the facilities of Saudi Aramco Jubail Refinery Company (SASREF).

The company indicated that this comes following the signing of a framework agreement for cooperation between Saudi Aramco and Rongsheng in April 2024 regarding the establishment of a joint venture in SASREF, in addition to major investments in the petrochemical sector in Saudi Arabia and China.

This transaction includes Rongsheng's potential acquisition of a 50% stake in SASREF, the development of SASREF's liquids-to-chemicals expansion project, and Saudi Aramco's potential acquisition of a 50% stake in Rongsheng's Zhongjin Petrochemical Complex (ZJPC), and the development of its expansion project (Zebra Project).

Saudi Aramco said the agreement with Hengli Group Co., Ltd. advances discussions on Aramco’s potential acquisition of a 10% stake in Hengli Petrochemical Co., Ltd., subject to necessary evaluations and approvals.

This follows the signing of a memorandum of understanding in April 2024 regarding the proposed transaction.