meed-logo

line1 line2 line3
SIGN IN / REGISTER

Aramco to begin tendering for Sasref expansion in Q2

14 March 2025

 

Register for MEED’s 14-day trial access 

Saudi Aramco is expected to begin the solicitation of interest (SoI) round for the main tendering process for a major expansion project of its affiliate, Saudi Aramco Jubail Refinery Company (Sasref), in the second quarter of this year.

The proposed project, which is part of Aramco’s $100bn liquids-to-chemicals programme, aims to convert the Sasref refining complex in Jubail Industrial City into an integrated refinery and petrochemicals complex by adding a mixed-feed cracker.

The project also involves building an ethane cracker that will draw feedstock from the adjacent Sasref refinery.

South Korean contractor Samsung E&A is performing pre-front-end engineering and design (pre-feed) and feed works on the project, based on a contract awarded by Aramco in March last year, according to sources.

The duration of the pre-feed and feed contract is understood to be 18 months, sources told MEED, adding that Aramco could be preparing to start the SoI process for the main engineering, procurement and construction (EPC) tender in the second quarter.

In November, Aramco signed a development framework agreement in Beijing with China-based Rongsheng Petrochemical Company for the Sasref integrated refining and petrochemicals complex project.

“The 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 while fostering international collaboration,” Aramco and Rongsheng Petrochemical said in a joint statement at the time.

Aramco, back in November, also confirmed that the project was in the pre-feed stage, adding that it envisaged that construction of large-scale steam crackers and the integration of associated downstream derivatives into the existing Sasref complex would enhance its ability to meet growing demand for high-quality petrochemical products.

The November agreement between Aramco and Rongsheng Petrochemical was the latest step in their joint investment in the Sasref petrochemical expansion project.

The two companies first signed a cooperation framework agreement in April to explore the formation of a joint-venture entity to invest in the project.

Rongsheng said it would potentially acquire a 50% stake in Sasref as part of that framework agreement. Aramco, in turn, would potentially seek to acquire a 50% stake in Rongsheng affiliate Ningbo Zhongjin Petrochemical Company (ZJPC), as well as participate in a planned expansion project of ZJPC in China.

Aramco and Rongsheng then signed preliminary documents in September related to the joint venture and Sasref expansion project.

ALSO READ: Regional downstream sector prepares for consolidation

Aramco and UK energy major Shell were previously joint owners of the Sasref refinery.

In April 2019, Aramco announced it had struck a deal with Shell to acquire the latter’s 50% share in the Sasref JV for $631m to take full ownership of the refinery complex. The Saudi energy giant has been the sole owner of the refinery since completing the transaction in September of that year.

Aramco already owns a 10% interest in Rongsheng through its subsidiary Aramco Overseas Company, based in the Netherlands. Rongsheng owns a 100% equity interest in ZJPC, which operates an aromatics production complex and has an interest in a JV that produces purified terephthalic acid.

Prior to signing the framework agreement with Rongsheng last April, Aramco signed a memorandum of understanding (MoU) with Hengli Group Company in April for the potential acquisition of a 10% stake in its subsidiary, Hengli Petrochemical, subject to due diligence and required regulatory clearances.

Aramco also signed preliminary documentation with Hengli for the potential stake acquisition.

Hengli Petrochemical owns and operates a 400,000 barrel-a-day refinery and integrated chemicals complex in China’s Liaoning province, as well as other plants and production facilities in Jiangsu and Guangdong provinces.

Aramco has been supplying crude oil feedstock to Hengli Petrochemical since at least 2018.

ALSO READ: Aramco and Chinese partners break ground on petrochemicals project

https://image.digitalinsightresearch.in/uploads/NewsArticle/13485243/main4918.jpg
Indrajit Sen

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Maghreb economies stabilise

    25 July 2025

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14332021/main.gif
  • July 2025: Data drives regional projects

    24 July 2025

    Click here to download the PDF

    Includes: Commodity tracker | Construction risk | Brent Spot Price | Construction output

    MEED’s August 2025 report on the Maghreb includes:

    > GOVERNMENT: Pursuit of political stability dominates Maghreb
    > ECONOMY: Maghreb economies battle trading headwinds
    > OIL & GAS: Oil company interest in Libya increases 
    > INDUSTRY: Algeria’s industrial strategy builds momentum
    > POWER & WATER: Slow year for Maghreb power and water awards
    > CONSTRUCTION: World Cup 2030 galvanises Morocco construction
    > DATABANK: Maghreb economies stabilise

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14332530/main.gif
  • Maghreb pushes for stability

    24 July 2025

    Commentary
    John Bambridge
    Analysis editor

    The Maghreb region continues to prioritise political stability as a foundation for long-term economic development, with Morocco emerging as a frontrunner in aligning its governance with investor expectations.

    Trade disruptions and fluctuating commodity prices have impacted the recent growth trajectories of the Maghreb markets, yet signs of resilience are evident as governments pivot towards diversified industrial strategies.

    Morocco’s regulatory reforms and infrastructure upgrades are proving to be an effective lure for foreign investment. The country’s steady stock market performance, despite external pressures, reflects this underlying confidence and highlights Rabat’s relative resilience within the region.

    Another key driver in Morocco is the infrastructure investment ahead of the 2030 Fifa World Cup. As a host nation, Morocco is undertaking projects to deliver new stadiums and improve transport networks. This momentum is expected to ripple through the construction and tourism sectors, bolstering GDP growth – projected at 3.9% in 2025 – and job creation.

    Algeria is meanwhile accelerating its efforts to develop higher-value manufacturing to leverage its abundant natural resources. Through investment-friendly reforms and new laws, recent policies are laying the groundwork for a strengthened private sector and an investment environment that can boost employment and deliver long-term industrial growth.

    In Libya, despite persistent political fragmentation and instability, international interest in the oil sector is returning as production has recovered to its highest level in a decade. This presents a rare bright spot for the Libyan economy, but sustained gains will require lasting political stability and security.

    Tunisia, meanwhile, continues to grapple with economic and political fragility. Incremental government progress is being made in securing international financial support and pursuing structural reforms, and investment in sectors such as tourism and renewable energy is gaining cautious traction. But social and political stability is a must if the country is going to escape its current economic stagnation and stimulate renewed growth.

    Energy and power are key sectors for the Maghreb as a whole, and the region has a burgeoning pipeline of projects in both – with an emphasis on renewables and green hydrogen. A weak start to project activity in 2025 leaves the hope that the region might better deliver on its potential in the second half.

    Overall, despite its economic and political challenges, rising energy demand and the proximity of European markets present clear opportunities for the Maghreb and chart a potential path forward for growth and investment – lending cautious optimism to the region’s future.

     

    MEED’s August 2025 report on the Maghreb includes:

    > GOVERNMENT: Pursuit of political stability dominates Maghreb
    > ECONOMY: Maghreb economies battle trading headwinds
    > OIL & GAS: Oil company interest in Libya increases 
    > INDUSTRY: Algeria’s industrial strategy builds momentum
    > POWER & WATER: Slow year for Maghreb power and water awards
    > CONSTRUCTION: World Cup 2030 galvanises Morocco construction
    > DATABANK: Maghreb economies stabilise

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14311064/main.gif
    John Bambridge
  • Shell and Kuwait to develop Egypt gas field

    24 July 2025

    A joint venture of UK-based Shell and a state-owned Kuwaiti oil company have approved plans for a project to develop Egypt’s Mina West gas field, according to a statement from the North African country’s Ministry of Petroleum and Mineral Resources.

    Kuwait Foreign Petroleum Exploration Company (Kufpec) and Shell have announced the final investment decision (FID) for the project.

    Shell has a 60% stake in the project and Kufpec holds the remaining 40% stake.

    The Mina West field was discovered in October 2023 and is located in the Northeast Imtiaz area of the Mediterranean Sea.

    Its production will be tied back to the existing West Delta Deep Marine (WDDM) infrastructure.

    Egypt’s petroleum ministry said the project will help boost domestic gas production in the country.

    Egypt is struggling to meet domestic demand for natural gas, and earlier this year, it had to halt production at several industrial facilities due to gas shortages.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14322186/main4343.jpg
    Wil Crisp
  • Egypt expected to complete gas project next year

    24 July 2025

    The project to develop a fourth production train at Egypt’s Western Desert gas complex in Amriya is now scheduled to come online next year, amid concerns about whether the facility will have access to required volumes of natural gas, according to sources.

    State-owned Egyptian Natural Gas Company (Gasco) is developing the facility, known as Train D, which has been dogged by problems for years.

    In February 2023, the project was on track to be completed by the start of 2024, but it has since suffered delays due to a range of issues, including procurement problems.

    Now the project is progressing slowly due to uncertainty about whether feedstock will be available when it eventually comes online.

    One source said: “The project is now progressing very slowly because there is little point in bringing it online if there is no gas available for it to process.”

    Egypt is struggling to meet domestic demand for natural gas, and earlier this year it had to halt production at several industrial facilities due to gas shortages.

    Facilities that were hit by the disruptions included Egyptian fertiliser producers.

    The main contracts for the fourth production train at Egypt’s Western Desert gas complex, worth a total of $295m, were awarded to Egypt-based Enppi and Petrojet in February 2020.

    In September 2023, Egypt’s cabinet approved granting a “golden licence” to Gasco for the project, which would increase the capacity of the Western Desert gas complex via a fourth production line with a design capacity of 600 million cubic feet a day (cf/d).

    The golden licence is awarded to projects identified by the Egyptian state as strategic and gives the project certain privileges. It is not widely understood exactly how the licence will benefit the project.

    The Gasco project is expected to provide employment opportunities for some 2,500 workers.

    It spans about 33 acres in Amriya’s Nahda Industrial Zone.

    The project aims to increase the production of natural gas derivatives, meet the raw material needs of petrochemical factories, and ensure a steady supply of liquefied petroleum gas to support local market demands.

    The fourth train will boost the capacity of the Western Desert gas complex from 950 million cf/d to 1,550 million cf/d.

    The scope of the project includes:

    • Installation of an evaporator
    • Installation of air-cooled condensers
    • Installation of a safety and security system
    • Excavation work
    • Installation of associated facilities

    In June 2021, Gasco secured a $200m syndicated loan from bankers to expand the Western Desert gas complex in Amriya.

    The lenders included Banque Misr, Banque du Caire, CIB, QNB, Al-Ahli, Arab African International Bank and Bank Audi.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14322266/main.jpg
    Wil Crisp