Saudi Aramco eyes 10% of China’s Hengli Petrochemical

SINGAPORE (ICIS)–Aramco and China’s Hengli Group have entered into discussions regarding the potential acquisition of a 10% stake in Hengli Petrochemical, the Chinese company said on Tuesday.

Based on the memorandum of understanding (MoU) signed on 22 April, the partners will also cooperate on crude and raw material supply, product sales as well as technology licensing, it said.

The deal “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”, Aramco said in a separate statement.

Hengli Petrochemical owns and operates a refinery and petrochemical complex at Liaoning province with 400,000 bbl/day of refining and 1.5 million tonnes/year ethylene capacities.

The company also owns several chemical plants in Jiangsu and Guangdong provinces.