Aramco, the Saudi Arabian oil giant, has successfully concluded a momentous deal, acquiring a 10% stake in Rongsheng Petrochemical Co for a staggering $3.4 billion, as per an official press release today.

This landmark transaction marks a significant milestone in Aramco’s expansion strategy in the Chinese downstream market. As part of the deal, Aramco will provide Rongsheng’s affiliate, Zhejiang Petroleum and Chemical Co, with a substantial supply of 480,000 barrels per day of Arabian crude. The latter is the largest integrated refining and chemicals complex in China.

Mohammed Y. Al Qahtani, Aramco’s Downstream President, expressed his enthusiasm about the strategic partnership with Rongsheng, stating that it aligns perfectly with Aramco’s liquids-to-chemicals strategy and strengthens the company’s foothold in China. He also highlighted the importance of this acquisition as a testament to Aramco’s status as a reliable and vital crude oil supplier.

Earlier this year, Aramco’s CEO, Amin Nasser, emphasized the significant potential for mutual benefit in creating a world-leading, integrated downstream sector in China. The focus lies in converting liquids directly into chemicals, which forms a crucial part of Aramco’s broader expansion plans for its liquid-to-chemicals business. This strategic move is poised to open new horizons for both Aramco and China’s petrochemical industry.