Saudi Aramco, its affiliate Saudi Aramco Jubail Refinery Company (SASREF), and an affiliate of Rongsheng Petrochemical Co. Ltd. have signed a development framework agreement to advance an expansion project at SASREF in Jubail.

The tripartite agreement outlines the cooperation mechanism and planning relating to the design and development of the project, which aims to expand SASREF’s refining and petrochemical capabilities.

The SASREF expansion project is located in Jubail Industrial City along the Arabian Gulf coast in Eastern Province.  

Rongsheng Petrochemical Chairman Li Shuirong said the project will contribute to China’s Belt and Road Initiative and Saudi Arabia’s Vision 2030.

In April, Aramco and Rongsheng Petrochemical signed a cooperation framework agreement relating to the planned formation of a joint venture in SASREF, as well as significant investments in the Saudi and Chinese petrochemical sectors. Preliminary documentation relating to the Development Framework Agreement was signed in September.

The project, currently in the Pre-FEED stage, envisages the construction of large-scale steam crackers and the integration of associated downstream derivatives into the existing SASREF complex to produce high-quality petrochemical products.

(Reporting by P Deol; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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