Aramco has entered into discussions with Hengli Group regarding the potential acquisition of a 10% stake in Hengli Petrochemical, subject to due diligence and required regulatory clearances.
Expanding Downstream Presence Globally
The companies signed a Memorandum of Understanding (MoU) regarding the proposed transaction.
It 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.
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 Y. 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.”
Source: Aramco