What are global petrochemical giants doing amid the industry’s 'low-visibility' period?

SABIC (Saudi Basic Industries Corporation) Systematically advancing localized cluster development and selective global expansion As the leader of Saudi Arabia’s petrochemical industry, SABIC demonstrates a ‘systems engineering’ mindset in its domestic development—centered on the Jubail Industrial City—integrating project implementation, deep local integration of industrial chains, low-carbon infrastructure construction, and capital operations. Globally, SABIC’s strategy reflects a more resolute approach to ‘selection and abandonment’. In Asia—especially China—the company is building a complete localized supply chain spanning from basic feedstocks to high-performance materials through its flagship project, the Fujian Gulei world-class integrated petrochemical complex, along with investments in companion engineering plastics compounding facilities. This aims to embed deeply into Asia’s high-growth markets. Simultaneously, SABIC is expanding production capacity for polyphenylene ether (PPE) oligomers used in printed circuit boards (PCBs) for AI servers and 5G base stations—targeting the high-growth, high-value-added electronics and electrical sector. In stark contrast, following the permanent shutdown of its cracker units in Teesside, UK, and elsewhere, SABIC has escalated its approach toward high-cost European assets—from ‘shutdown optimization’ to ‘strategic exit’. LG Chem Shifting momentum: focusing on battery materials and green transition LG Chem has submitted a restructuring plan for its domestic petrochemical business, optimizing—or even cutting—certain traditional capacities to cope with industry-wide profitability pressures. By contrast, it is aggressively pursuing market leadership in battery materials. Technologically, LG Chem is promoting its innovative Lithium-free Precursor-Free (LPF) cathode material and has commenced mass production, aiming to reduce both costs and carbon footprint by shortening the process chain. Market-wise, North America has become its strategic priority. This combination of ‘technological differentiation + localized supply chain + long-term order binding’ underscores its firm commitment to capturing the certainty of electrification. Mitsubishi Chemical Group Focusing on high-value-added sectors Mitsubishi Chemical Group is explicitly channeling growth resources into high-value-added material sectors such as electrification, semiconductors, and food packaging. On sustainability, its initiatives are evolving from plastic chemical recycling toward more advanced carbon-circular technologies. A chemical recycling facility built in collaboration with ENEOS at the Ibaraki plant has recently been completed—marking Mitsubishi Chemical’s circular economy strategy’s transition from R&D demonstration to commercial operation, aimed at establishing stable supplies of recycled raw materials. Meanwhile, in partnership with Mitsubishi Gas Chemical and others, it will launch a carbon-circular demonstration project in 2026 that converts steel mill CO₂ into methanol and then propylene.

Teaming up with Saudi Arabia: a major private-sector refining & petrochemical conglomerate gears up for takeoff!

Rongsheng Petrochemical has once again partnered with Saudi Arabia. On July 16, 2026, Rongsheng Petrochemical announced it had signed a ‘Project Development Agreement’ with Saudi Basic Industries Corporation (SABIC). The new project is named the ‘Jintang New Materials Project’, with Rongsheng New Materials as the implementing entity; SABIC plans to acquire a 30–50% equity stake in Rongsheng New Materials. At first glance, this appears to be an ordinary project collaboration—but beneath the surface lies a profound and longstanding relationship between Rongsheng Petrochemical and Saudi capital. SABIC is a subsidiary of Saudi Aramco. As early as 2023, Saudi Aramco invested RMB 24.6 billion in a premium acquisition of a 10% equity stake in Rongsheng Petrochemical, becoming one of its key strategic shareholders. Today, amid intertwined geopolitical tensions and supply-demand imbalances, the global petrochemical industry is undergoing dramatic cyclical shifts. Can Rongsheng Petrochemical leverage its cooperation with Saudi Aramco to build resilience and power through this cycle? Deep-rooted ties — a mutual pursuit Let’s first introduce this ‘mysterious’ counterparty: Saudi Aramco. Middle East, oil, Saudi Arabia—these keywords inevitably evoke images of ‘wealth’. And indeed, the Saudi Arabian Oil Company—commonly known as Saudi Aramco—is the world’s largest oil producer and the sixth-largest oil refiner. It owns the world’s largest onshore oil field, Ghawar, and the largest offshore oil field, Safaniyah. In the 2023 Fortune Global 500 ranking, Saudi Aramco ranked second in revenue and first in net profit—truly among Earth’s most profitable companies. With vast crude oil reserves, Saudi Aramco seeks to further develop—and lock in—downstream markets. To that end, it has engaged in long-standing cooperation with China. Its partnership with Rongsheng Petrochemical stands out as a prime example. In 2023, Saudi Aramco made two major moves in China: first, collaborating with Norinco Group and others to develop the Huajin-Aramco Petrochemical Project; second, acquiring a 10% equity stake in Rongsheng Petrochemical. Beyond equity ties, Rongsheng Petrochemical and Saudi Aramco maintain close operational links. Statistics show that in the first half of 2026 alone, their related-party transaction volume totaled RMB 25.1 billion. So why Rongsheng Petrochemical specifically? Because among private-sector refining and petrochemical enterprises, Rongsheng holds a prominent position. First, its revenue scale leads peers. Within the petroleum and petrochemical industry, Rongsheng Petrochemical’s revenue has long ranked third—behind only CNPC and Sinopec. In 2025, its revenue reached RMB 308.622 billion—over RMB 100 billion more than Hengli Petrochemical (RMB 201.087 billion). In the first half of 2026, amid volatile ‘roller-coaster’ fluctuations in international oil prices, the company’s revenue declined 12.93% year-on-year to RMB 129.407 billion—yet its net profit surged 748.83% year-on-year to RMB 5.111 billion. Second, its refining & petrochemical capacity firmly ranks at the top among private enterprises. Refining and petrochemicals, at their core, aim to fully utilize every drop of crude oil. Refining is the indispensable step transforming crude oil into chemical products: via atmospheric and vacuum distillation followed by a series of processes, crude oil is converted into basic chemical feedstocks—a process commonly described as ‘from one drop of oil to one filament’. Currently, Rongsheng Petrochemical is a major Asian producer of polyester and high-value-added polyolefins. Moreover, it holds the world’s largest PX and PTA production capacities, with products covering numerous application fields.

Sabic expects ‘gradual recovery’ in petchems market on urea, S-Oil, Fujian growth prospects

5 days ago

SABIC anticipates a gradual petrochemical market recovery linked to urea and project growth, despite a 10% Q3 price decline, while planning a 54% expansion in urea production capacity.

chemweek

2026-01-27

S-Oil narrows petchem losses; sees firm outlook for aromatics in Q1

2026-02-10

S-Oil signs $3.7B deal to supply PE to Sabic

2026-02-27

S-Oil to Start Up Ulsan Cracker in Q3 2026

2026-04-13

CPC raises oil exports in March by 48% from February, sources say

2026-04-27

Rupee faces pressure from stubbornly high oil, weak Asian peers