International Energy Network has learned that on January 2, Rongsheng Petrochemical Co., Ltd. and Saudi Aramco signed a Memorandum of Understanding (MoU) in Dharan, Saudi Arabia. According to the MoU, both parties intend to mutually acquire equity in each other's subsidiary companies. Following a series of cooperation agreements signed in March 2023, this latest development signifies a significant step forward in their collaboration, indicating a crucial milestone in their joint venture into multinational entity projects.

As per the MoU, discussions are underway for Rongsheng Petrochemical (or its affiliates) to potentially acquire a 50% stake in Saudi Aramco's Jubail Refining and Petrochemical Company ("SASREF"). The agreement also outlines plans for expanding refining and petrochemical capacities, enhancing product flexibility, complexity, and quality. Simultaneously, both parties are exploring the potential acquisition by Saudi Aramco (or its affiliates) of up to 50% equity in Rongsheng Petrochemical's subsidiary, Ningbo Zhongjin Petrochemical Co., Ltd. The collaboration aims to jointly develop upgrades and expansions of existing facilities at Zhongjin Petrochemical, as well as the development of new downstream projects such as Rongsheng New Materials (Zhoushan) project.

Saudi Aramco is an integrated energy and chemical company, contributing about one-eighth of the world's crude oil production. Additionally, Saudi Aramco is actively involved in the development of new energy technologies. Rongsheng Petrochemical operates the world's largest single-unit refinery, the Zhejiang Petrochemical 40 million-ton integrated project. The company is strategically positioned in various projects, including the Zhongjin Petrochemical Aromatic Hydrocarbon project and Yisheng series PTA project. Rongsheng is a key producer in China and Asia for polyester, new energy materials, engineering plastics, and high-value-added polyolefins. It holds a leading global position in the production of chemical products such as PX and PTA. Rongsheng is currently expanding its footprint with projects like the Ningbo Zhongjin Petrochemical upgrade and expansion, as well as the Rongsheng New Materials (Zhoushan) project.

The acquisition of Saudi Aramco's refinery equity in Saudi Arabia, along with participation in its expansion projects, and the involvement of Saudi Aramco in domestic projects, is a strategic move by Rongsheng Petrochemical to accelerate the global synergistic development of the petrochemical industry.

This collaboration not only ensures a stable and competitive supply of petrochemical raw materials for Rongsheng Petrochemical but also brings advanced chemical technologies and a more coordinated global industrial system. Rongsheng Petrochemical, leveraging its experience in the construction and operation of large-scale integrated refining projects, will support Saudi Aramco in achieving its strategic goal of expanding the chemical product industry chain.