- Aramco has announced agreements with Rongsheng Petrochemical and Hengli Group to reinforce China’s long-term energy security.
- The agreements focus on mutual benefits, future technology solutions, and major expansions in Saudi and Chinese petrochemical sectors.
- Strategic partnerships include investments and potential stake acquisitions in key petrochemical companies.
Aramco has announced new agreements with Rongsheng Petrochemical Co. Ltd. and Hengli Group Co., Ltd., marking a continued effort to support China’s long-term energy security and technological development. These agreements were revealed during Chinese Premier Li Qiang’s visit to Saudi Arabia.
Collaboration for Economic Growth
These collaborations strengthen Aramco’s role in advancing China’s energy sector, while also fostering economic growth within Saudi Arabia. The agreements further solidify ties in key technology sectors, supporting long-term mutual benefits.
Mohammed Y. Al Qahtani, Aramco Downstream President, emphasized the importance of these agreements, stating: “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.”
Development Framework Agreement with Rongsheng
Aramco has signed preliminary documentation for a Development Framework Agreement with Rongsheng, which involves the potential expansion of Saudi Aramco Jubail Refinery Company (SASREF) facilities. This follows an earlier announcement of a Cooperation Framework Agreement between the two companies.
The agreements outline plans for a joint venture in SASREF, with potential investments in both Saudi and Chinese petrochemical sectors. Rongsheng’s acquisition of a 50% stake in SASREF and Aramco’s possible acquisition of a 50% stake in Ningbo Zhongjin Petrochemical Co. Ltd. (ZJPC) are key components of this collaboration.
Strategic Cooperation Agreement with Hengli Group
Aramco has advanced talks with Hengli Group, aiming to acquire a 10% stake in Hengli Petrochemical Co., Ltd. The acquisition is still subject to due diligence and regulatory clearances, but it follows an earlier Memorandum of Understanding signed in April 2024.
This agreement represents a key step in deepening Aramco’s partnerships within the Chinese petrochemical sector and expanding its influence in the global energy market.
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Source: Aramco
