In a recent development within the energy and chemicals industry, Aramco, a giant in integrated energy solutions, has publicly announced its ongoing negotiations with Hengli Group Co., Ltd. The talks revolve around Aramco’s intention to acquire a minority interest, specifically a 10% share, in Hengli Petrochemical Co., Ltd. The completion of this deal is contingent on thorough due diligence and the requisite approvals from regulatory bodies.
A memorandum of understanding has been signed by Aramco and Hengli Group, laying the groundwork for this potential transaction. Aramco has articulated that this move is in line with its strategic objectives, which include bolstering its downstream operations in crucial, high-value international markets, progressing its initiative to convert oil into chemicals, and cementing oil supply commitments that will endure over the long term.
The company in question, Hengli Petrochemical, operates under the umbrella of Hengli Group and boasts a significant operational scope. It manages a refinery with the capacity to handle 400,000 barrels per day, and an integrated chemicals complex in Liaoning Province, China. Furthermore, Hengli Petrochemical possesses several other industrial plants and production facilities across the Jiangsu and Guangdong Provinces in China.
Mohammed Al Qahtani, the President of Aramco’s Downstream division, expressed optimism about the memorandum: 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.