Aramco, a leader in integrated energy and chemicals, has initiated talks with Hengli Group for buying 10 percent stake in Hengli Petrochemical.
The proposed deal, subject to thorough due diligence and regulatory approvals, marks a significant step in Aramco’s strategy to bolster its downstream operations in key markets, propel its liquids-to-chemicals initiative, and secure reliable crude oil supply agreements.
Hengli Petrochemical, a subsidiary of Hengli Group, boasts a robust presence with a 400,000-barrel-per-day refinery and an integrated chemicals complex located in Liaoning Province, China. Additionally, the company operates multiple plants and production facilities spread across Jiangsu and Guangdong Provinces.
Mohammed Y. Al Qahtani, Aramco’s Downstream President, expressed enthusiasm about the potential collaboration, stating, “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.”