Aramco said it was in talks with Hengli Group to potentially acquire a 10 per cent stake in the Chinese company's petrochemical unit, as the state-owned petroleum and natural gas company looks to expand its downstream presence in top markets, advance its liquids-to-chemicals program, and secure long-term crude oil supply deals.
Subject to due diligence and required regulatory clearances, the companies signed a preliminary deal to acquire a stake in Hengli Petrochemical 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.”
