Inspenet, July 24, 2023.
Aramco has reported that it has completed the purchase of 10% of the Chinese petrochemical company Rongsheng for 3.4 billion dollars , a move that seeks to strengthen its presence in the Asian market.
“Aramco successfully closed a landmark transaction to acquire a 10% stake in Rongsheng Petrochemical Co. Ltd. for RMB 24.6 billion (about $3.4 billion) through its Netherlands-based subsidiary Aramco Overseas Company BV,” a statement from the Saudi state oil company said.
Stake in Chinese petrochemical company Rongsheng
The acquisition follows the signing of “definitive strategic agreements” previously announced by both companies in late March. This step signals the steady growth of Aramco’s downstream presence in China, which includes the daily supply of 480,000 barrels of Arabian crude to China’s largest refining and chemical complex, owned by Zhejiang Petroleum and Chemical Co. Ltd (ZPC), a subsidiary of Rongsheng.
In the statement, Aramco’s executive vice president of refining, Mohamed al Qahtani, expressed his satisfaction with this key acquisition, which is part of the company’s long-term growth strategy.
In addition, Aramco and TotalEnergies have awarded contracts worth $11 billion for the construction of a new petrochemical complex in Saudi Arabia.
Rongsheng, among other assets, owns 51% of the ZPC refinery, which operates China’s largest integrated refining and chemicals complex. This refinery has the capacity to process 800,000 barrels of crude oil per day and produce 4.2 million metric tons of ethylene per year .
The investment follows the announcement in March that a refinery and petrochemical complex will be built in China in the second quarter of 2023 by Aramco’s joint venture, Huajin Aramco Petrochemical Company (HAPCO).
Last December, the oil company announced an agreement with the Chinese petrochemical corporation Sinopec to build a refinery and a petrochemical plant in southern China, specifically in Fujian.
Source and photo: https://elperiodicodelaenergia.com/aramco-adquiere-10-petroquimica-china-valor-3-400-millones-dolares/
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