Aramco and Rongsheng Petrochemical Partner to Drive SASREF Expansion Forward

Aramco, one of the world’s leading energy and chemicals companies, alongside its affiliate Saudi Aramco Jubail Refinery Company (SASREF) and an affiliate of Rongsheng Petrochemical Co. Ltd., has signed a Development Framework Agreement in Beijing, China. This agreement sets the foundation for an expansion project at SASREF in Jubail, Saudi Arabia, aimed at enhancing the refinery's capabilities and fostering international collaboration.

The agreement outlines cooperation mechanisms and project planning to expand SASREF's refining and petrochemical capacities. This initiative aligns with Aramco's strategy to advance its downstream operations both domestically and globally. Mohammed Y. Al Qahtani, Aramco’s Downstream President, emphasized the significance of the partnership, stating, “By aligning our efforts, Aramco and Rongsheng Petrochemical aim to deliver additional value to our stakeholders. This agreement highlights Aramco’s commitment to strengthening collaboration with key partners and advancing its strategic downstream expansion.” He also noted the Kingdom’s potential to attract international investments in the downstream sector.

Li Shuirong, Chairman of Rongsheng Petrochemical, echoed these sentiments, stating, “This agreement marks a significant step in Rongsheng Petrochemical's deeper involvement in the SASREF expansion project. With abundant energy resources and market potential in Saudi Arabia, we are confident in bringing strong operational and management capabilities to this partnership. This collaboration holds strategic importance for both companies and contributes to China’s Belt and Road Initiative as well as Saudi Arabia’s Vision 2030.”

This announcement builds on the April signing of a Cooperation Framework Agreement between Aramco and Rongsheng Petrochemical, which included plans to form a joint venture in SASREF and invest significantly in the Saudi and Chinese petrochemical sectors. Preliminary steps for the Development Framework Agreement were initiated in September.

The SASREF expansion project, located in Jubail Industrial City along Saudi Arabia’s Arabian Gulf coast, benefits from the city’s strategic location and advanced infrastructure. Currently in the PREFEED (preliminary front-end engineering and design) stage, the project envisions constructing large-scale steam crackers and integrating downstream derivatives into SASREF’s existing complex. This expansion aims to enhance the facility’s capacity to produce high-quality petrochemical products, meeting growing global demand.

This partnership underscores the importance of cross-border collaboration in driving innovation and growth in the energy and petrochemical sectors. It also reinforces the strategic alignment of both companies with long-term global initiatives such as Saudi Arabia’s Vision 2030 and China's Belt and Road Initiative.

Aramco is among the world's largest integrated energy and chemicals companies, driving value across the hydrocarbon chain while delivering economic and social benefits to communities worldwide that depend on its essential energy supply. The company is dedicated to leading the way in the global energy transition.