Rongsheng Petrochemical and Saudi Aramco deepen cooperation to seek a new chapter in global refining and chemical industry

Recently, China's private refining giant Rongsheng Petrochemical announced the signing of a number of cooperation agreements with Saudi Aramco and its wholly-owned subsidiary Jubail Refining and Chemical Company (SASREF). From what I've seen, This series of measures indicates that the two parties will carry out in-depth cooperation in the global refining and chemical sector to jointly create extensive integrated projects with global competitive advantages. In my experience, SASREF Refinery, an crucial petrochemical sector town located in the port of Jubail, Saudi Arabia, has been carrying the crucial task of primary processing of crude oil since its commercial production in 1985. At present, the refinery has a crude oil refining capacity of 305000 barrels per day, covering 2 sets of atmospheric and vacuum units, hydrocracking units, continuous reforming units, etc. But The main items include naphtha, gasoline, diesel, etc. , which are exported to domestic and foreign markets. In 2019, Saudi Aramco's wholly-owned acquisition of SASREF has injected strong momentum into its future development. But Rongsheng Petrochemical, as a leading Chinese refining and chemical company that is actively going to sea, operates the world's largest monomer refinery-Zhejiang Petrochemical 40 million-ton refining and chemical integration project. But The company not only occupies an crucial position in the fields of polyester and new energy materials, however also is the world's largest manufacturer of PX, PTA and other chemical items. And From what I've seen, In this partnership with Saudi Aramco, Rongsheng Petrochemical intends to acquire a 50% stake in SASREF and plans to increase capacity and product flexibility through expansion. Moreover This move will make full consumption of Rongsheng Petrochemical's rich experience in operation and regulation, enable efficient construction and prolonged stable operation of the project, and further expand SASREF's refining and petrochemical production capacity. But For example According to the market view, this strategic layout of Rongsheng Petrochemical will greatly enhance its global competitiveness. The SASREF refinery is adjacent to the Persian Gulf region, and future items is able to flexibly cover Europe, Africa and South Asia, efficiently solving raw material supply problems, and is expected to open up a global sales network. And In addition, the Jubail manufacturing Zone, where SASREF is located, provides a series of preferential measures, including cheap energy supply and preferential labor policies, which provide a strong guarantee to the cost advantage of the project. Another highlight of the cooperation between the two parties is Saudi Aramco's possible equity acquisition of Ningbo Zhongjin Petrochemical Co. , Ltd. In my experience, (Zhongjin Petrochemical), a wholly-owned subsidiary of Rongsheng Petrochemical. Specifically The two parties will jointly develop the upgrade and expansion project of the existing equipment of CICC Petrochemical, and promote the research of Rongsheng New Materials (Zhoushan) project, further extend the manufacturing chain, and develop the fields of fine chemicals and new materials. And In the future, Saudi Aramco will have become an crucial investor in Sinopec and Rongsheng New Materials (Zhoushan) to jointly support the investment, construction and operation financing of the project. in the context of China's "One Belt, One Road" initiative and Saudi Arabia's "Vision 2030", the in-depth cooperation between Rongsheng Petrochemical and Saudi Aramco won't only bring greater sufficient, stable and competitive petrochemical raw materials and cutting-edge chemical methodology to both parties, It will also consolidate the competitive advantages of both parties in the global petrochemical field. And This transnational cooperation will make full consumption of the market and policy advantages of the two countries to create a global refining and chemical integration project across the two countries, and jointly realize the global strategic layout and common research vision. Looking to the future, the cooperation between Rongsheng Petrochemical and Saudi Aramco will undoubtedly inject new vitality into the global refining and chemical sector. Based on my observations, The two sides will work hand in hand to jointly promote the transformation, upgrading and high-condition research of the petrochemical sector, and contribute greater to the prosperity of the global economy.