Saudi Aramco is in talks with Hengli Group Co., Ltd. about potentially acquiring a 10 per cent stake in the China’s Hengli Petrochemical Co., Ltd., pending due diligence and regulatory approvals.
According to the statement released on Monday, the companies have signed a Memorandum of Understanding (MoU) for this deal, aligning with Aramco’s aim to grow its downstream operations in key markets, advance its liquids-to-chemicals programme, and secure long-term crude oil supplies.
Hengli Petrochemical, a subsidiary of Hengli Group, operates a 400,000 barrel per day (bpd) refinery and chemicals complex in Liaoning Province, China, along with plants in Jiangsu and Guangdong Provinces.
Mohammed Y. Al Qahtani, Aramco Downstream President, stated, “This MoU supports our global downstream growth strategy. We’re actively pursuing opportunities in vital markets to advance our liquids-to-chemicals initiative. We anticipate forming new partnerships and expanding our presence in China.”
