Aramco, a global leader in integrated energy and chemicals, is in talks with Hengli Group Co., Ltd. (“Hengli Group”) to potentially acquire a 10% stake in Hengli Petrochemical Co., Ltd. (“Hengli Petrochemical”), pending thorough due diligence and regulatory approvals.

On April 22, 2024, the firms entered into a Memorandum of Understanding (MoU) concerning the potential transaction, which is in line with Aramco’s strategy to broaden its footprint in critical high-value markets, propel its liquids-to-chemicals initiative, and establish enduring crude oil supply agreements.

Hengli Petrochemical, a subsidiary of Hengli Group, oversees a refinery capable of processing 400,000 barrels per day and an integrated chemicals complex situated in Liaoning Province, China. Additionally, it oversees numerous plants and production facilities situated in Jiangsu and Guangdong Provinces.

Mohammed Y. Al Qahtani, President of Aramco Downstream, expressed, “This MoU reinforces our commitment to expanding our downstream presence worldwide. We remain dedicated to exploring new opportunities in key markets as we advance our liquids-to-chemicals strategy. We are eager to establish new partnerships and are enthusiastic about the opportunity to enhance our presence in the significant Chinese market.”

Founded in 1994, Hengli Group is a global enterprise specializing in the complete production chain encompassing oil refining, petrochemicals, polyester new materials, and textiles. With a workforce of 170,000 employees, the Group currently operates one of the world’s largest PTA plants and functional fiber production bases, alongside weaving enterprises. In addition to this, it has established an "Enterprise Technology Center" in China. Renowned for its corporate competitiveness and product brand value, Hengli Group has achieved remarkable records and consistently ranks among the industry leaders on the international stage. Currently, Hengli Group possesses ownership of three publicly listed companies: Hengli Petrochemical Co., Ltd, Guangdong Songfa Ceramics Co., Ltd., and Suzhou Wujiang Tongli Lake Co., Ltd., along with over 20 other entities. Production bases have been set up by the company in Suzhou, Dalian, Suqian, Nantong, Yingkou, Luzhou, Huizhou, and Guiyang.

Aramco stands as one of the globe's premier integrated energy and chemicals corporations, generating value throughout the hydrocarbon chain while providing essential energy to individuals and communities worldwide, thus contributing to societal and economic prosperity. Aramco is dedicated to assuming a pivotal role in the energy transition, acknowledging its responsibility in advancing the global journey towards a net-zero economy. Aramco workforce is diligently engaged in addressing the sustainability challenges facing the world, striving to contribute to solutions that foster environmental well-being.