Industry, Logistics & Shipping

Aramco in talks to buy 10% stake in China's Hengli Petrochemical

Aramco, one of the world’s leading integrated energy and chemicals companies, has entered into discussions with China's Hengli Group regarding the potential acquisition of a 10% stake in Hengli Petrochemical, subject to due diligence and required regulatory clearances. 
The companies today (April 22) 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. 
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.” -TradeArabia News Service