Aramco in talks to buy 10% of China’s Hengli Petrochemical

The MoU signing ceremony 

Saudi Aramco entered into discussions with Hengli Group Co., Ltd. (Hengli Group) regarding the potential acquisition of a 10% stake in Hengli Petrochemical Co., Ltd. (Hengli Petrochemical).

The acquisition is subject to due diligence and required regulatory clearances, Aramco said in an emailed statement to Argaam.

The companies today signed a Memorandum of Understanding (MoU) regarding the proposed transaction, which aligns with Aramco’s strategy to expand its downstream presence in key high-value markets, advance its liquids-to-chemicals program, and secure long-term crude oil supply agreements.

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Hengli Petrochemical, a controlled subsidiary of Hengli Group, owns and operates a 400,000 barrel per day refinery and integrated chemicals complex in Liaoning Province, China, and several plants and production facilities in Jiangsu and Guangdong Provinces.

Mohammed Al Qahtani, Aramco Downstream President, said: “This MoU supports our efforts to grow our global downstream footprint. We continue to explore new opportunities in important markets, as we seek to progress in our liquids-to-chemicals strategy. We look forward to forging new partnerships and are excited by the prospect of expanding our presence in the important Chinese market.”