Aramco, a leading global integrated energy and chemicals company, has initiated discussions with Hengli Group Co., Ltd. regarding the potential acquisition of a 10 percent stake in Hengli Petrochemical Co., Ltd. . This proposed transaction, subject to due diligence and necessary regulatory approvals, signifies Aramco’s strategic intent to enhance its downstream presence in key high-value markets, advance its liquids-to-chemicals programme, and secure long-term crude oil supply agreements.

The companies formalised their intentions by signing a Memorandum of Understanding regarding the potential transaction. This strategic move aligns with Aramco’s vision of expanding its global footprint in downstream operations, particularly in vital markets such as China.

Hengli Petrochemical, a subsidiary of Hengli Group, operates a substantial 400,000 barrel per day refinery and integrated chemicals complex situated in Liaoning Province, China. Additionally, it oversees various plants and production facilities across Jiangsu and Guangdong Provinces.

Commenting on the MoU, Mohammed Y. Al Qahtani, Aramco downstream president, expressed optimism about the potential partnership, 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. We look forward to forging new partnerships and are excited by the prospect of expanding our presence in the important Chinese market.”

For more information visit www.aramco.com