Development framework agreement paves for major petrochemicals venture
Aramco, one of the global’s leading fused energy and chemicals enterprises, Aramco affiliate Saudi Aramco Jubail Refinery Company (SASREF), and an affiliate of Rongsheng Petrochemical Co. Ltd. (Rongsheng Petrochemical) have signed a Development Framework Agreement in Beijing, China, that paves the manner for an enlargement venture at Saudi Aramco Jubail Refinery Company (SASREF) in Jubail, Kingdom of Saudi Arabia.
The tripartite agreement outlines the cooperation mechanism and making plans referring to the design and development of the venture, which targets to enlarge SASREF’s refining and petrochemical abilities while fostering international collaboration.
Mohammed Y. Al Qahtani, Aramco Downstream President, said: “By aligning our efforts, Aramco and Rongsheng Petrochemical aim to deliver extra value to our stakeholders. This Development Framework Agreement underscores Aramco’s intentions to fostering nearer collaboration with key partners and progressing its strategic downstream enlargement, each in the Kingdom of Saudi Arabia and across the world. It also highlights the ability of the Kingdom’s downstream area to attract remote places players.”
Li Shuirong, Rongsheng Petrochemical Chairman, stated: “The signing of the Development Framework Agreement units the stage for Rongsheng Petrochemical’s in-intensity participation in the SASREF enlargement venture. Saudi Arabia has ample energy resources and tremendous marketplace potential, and Rongsheng Petrochemical will carry sturdy momentum to the partnership thru our brilliant operation and control abilities and market competitiveness. This collaborative venture no longer most effective has crucial strategic value for the destiny improvement of both businesses however may also contribute to China’s Belt and Road Initiative and Saudi Arabia’s Vision 2030.”
It follows an declaration in April that Aramco and Rongsheng Petrochemical had signed a Cooperation Framework Agreement regarding the deliberate formation of a joint venture in SASREF, in addition to tremendous investments in the Saudi and Chinese petrochemical sectors. Preliminary documentation regarding the Development Framework Agreement turned into signed in September.
The SASREF enlargement venture is positioned in Jubail Industrial City along the Arabian Gulf coast in Saudi Arabia’s Eastern Province. The city has nicely-developed infrastructure and strategic geographical advantages.
The venture, that is currently inside the PREFEED level, envisages construction of large-scale steam crackers and the combination of related downstream derivatives into the existing SASREF complex, enhancing its capability to fulfill growing demand for for high-quality petrochemical products.
