Saudi Aramco has entered into talks with Hengli Group, a leading petrochemicals chain, to acquire a 10% stake in Hengli Petrochemical. This approach has culminated in the signing of a memorandum of understanding outlining the preliminary terms of the potential transaction, which is subject to a thorough evaluation and obtaining the necessary regulatory approvals.
Saudi Aramco’s strategic investment
In relation to this strategic move, Saudi Aramco has communicated that this possible investment is in line with its objective of expanding operations in the “downstream” segment (refining and marketing) in high-value markets.
Additionally, this agreement underscores its commitment to strengthening its liquids-to-chemicals program and ensuring a stable supply of crude oil through long-term agreements.
Mohammed Y. Al Qahtani, president of Aramco Downstream, has expressed his optimism regarding this expansion, highlighting the company’s interest in exploring new opportunities in key markets. ” Our focus on transforming liquids into chemicals and expanding our presence in China is strong and will continue to evolve ,” he said.
It is important to mention that Hengli Petrochemical, under the umbrella of the Hengli Group, manages a refinery with a capacity of 400,000 barrels per day and an integrated petrochemical complex in Liaoning province, in addition to having additional facilities in Jiangsu and Guangdong.
This strategic alliance between Aramco and Hengli reinforces Aramco’s presence in Asia and also highlights the global trend towards cross-border collaborations in the energy sector. These partnerships are crucial to ensure stability in energy supplies and to foster technological innovations that can lead to greater efficiency and sustainability in the petrochemical industry in the long term.
Follow us on social networks and don’t miss any of our publications!
Inspenet.com YouTube LinkedIn Facebook Instagram X
Source and photos: elperiodicodelaenergia.com
Loading...
