Aramco, a leading energy and chemicals company, has closed its transaction to acquire 10 percent stake in Rongsheng Petrochemical for RMB 24.6 billion ($3.4 billion).
The acquisition represents the growth of Aramco’s downstream presence in China and includes the supply of 480,000 barrels per day of Arabian crude to the largest Chinese integrated refining and chemicals complex, which is owned by Rongsheng affiliate Zhejiang Petroleum and Chemical (ZPC).
Mohammed Y. Al Qahtani, Aramco Downstream President, said: “Our partnership with Rongsheng advances Aramco’s liquids to chemicals strategy while growing our presence in China and showcases our importance as a reliable supplier of crude oil. This key acquisition is an important part of Aramco’s long-term growth strategy, expanding our presence in a vital market.”
Rongsheng owns 51 percent equity in ZPC, whose complex has the capacity to process 800,000 barrels per day of crude oil and to produce 4.2 million metric tons of ethylene per year.