Aramco Raises Investments In China’s Petrochem Industry

Saudi energy giant Aramco, the world’s largest integrated oil and gas company, is planning to increase its investment in its Chinese partner as it expands its footprint in the country, Laura He reported for CNN.

Aramco is in talks with Rongsheng Petrochemical to acquire a 50% stake in the latter’s subsidiary Ningbo Chongjin Petrochemical. I Photo: Aramco Facebook

Aramco is in talks with Rongsheng Petrochemical to acquire a 50% stake in the latter’s subsidiary Ningbo Chongjin Petrochemical.

Rongsheng, a Hangzhou-based privately-owned refiner, said it’s also discussing taking a 50% stake in Saudi Aramco Jubail Refinery Co., citing a memorandum of understanding the two sides had signed a day earlier.

The companies could also expand the Chinese subsidiary’s equipment and build the Rongsheng New Materials (Zhoushan) project, Rongsheng said.

The project will make high-performance petrochemicals, such as engineering plastics, special polyesters, and high-end resins that can be used in electronic devices and semiconductors.

Saudi Arabia has strengthened its energy ties with China since last year. In March, Aramco agreed to buy a 10% stake in Rongsheng for 24.6 billion yuan ($3.5 billion).

As part of the deal, it would supply 480,000 barrels per day of crude oil to the Chinese company.

China has also sought to grow its presence in Saudi Arabia. Sinopec, the state-owned refining giant, has a joint venture with Aramco operating a refinery project in the Yanbu Industrial City in Saudi Arabia.

The Yanbu Aramco Sinopec Refining Company, which has been in operation since 2016, uses 400,000 barrels per day of Arabian heavy crude oil to produce premium transportation fuels, according to the company.

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