Saudi Aramco and Chinese Giants Rongsheng, Hengli Forge New Energy Agreements

Aramco, a global leader in energy and chemicals, has announced new agreements with key Chinese partners during a visit to Saudi Arabia by Chinese Premier Li Qiang and his senior delegation. These agreements emphasize Aramco’s commitment to supporting China’s long-term energy security and development while enhancing China’s role in Saudi Arabia’s economic growth. The deals also aim to foster collaboration in new technology development. Among the agreements are a preliminary Development Framework Agreement with Rongsheng Petrochemical Co. Ltd. (Rongsheng) and a Strategic Cooperation Agreement with Hengli Group Co., Ltd.

Mohammed Y. Al Qahtani, President of Aramco Downstream, highlighted the significance of these partnerships, 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 a key player in our global downstream growth strategy, and we look forward to unlocking new opportunities in this vital market. These agreements reflect our shared goal to elevate relationships in critical sectors, advance our downstream objectives, and contribute to the energy and petrochemical sectors of both China and Saudi Arabia.”

The preliminary Development Framework Agreement with Rongsheng relates to the potential joint development and expansion of Saudi Aramco Jubail Refinery Company (SASREF) facilities. This builds on an April announcement where Aramco and Rongsheng signed a Cooperation Framework Agreement for a joint venture in SASREF and investments in the Saudi and Chinese petrochemical industries. The partnership includes Rongsheng’s potential acquisition of a 50% stake in SASREF, a liquids-to-chemicals expansion project at the refinery, and Aramco’s possible acquisition of a 50% stake in Rongsheng affiliate Ningbo Zhongjin Petrochemical Co. Ltd. (ZJPC), along with participation in ZJPC’s expansion.

Additionally, Aramco’s Strategic Cooperation Agreement with Hengli Group focuses on the potential acquisition of a 10% stake in Hengli Petrochemical Co., Ltd., subject to due diligence and regulatory approvals. This follows a Memorandum of Understanding (MoU) signed in April 2024 regarding the proposed transaction.

These agreements signify the deepening ties between Aramco and its Chinese partners, reinforcing collaboration in energy, petrochemicals, and technology development for the future.

Aramco is a global leader in integrated energy and chemicals, generating value throughout the hydrocarbon supply chain. The company provides essential energy resources, delivering economic and social benefits to communities worldwide that depend on its vital energy supply.  Aramco is dedicated to taking a leadership role in the energy transition. Aramco recognizes its responsibility in advancing a net-zero economy, and its dedicated team is actively working to address the world's sustainability challenges.