Saudi Aramco has entered into discussions with Hengli Group on the potential acquisition of a 10% stake in Hengli Petrochemical.

The companies have signed a memorandum of understanding on the proposed transaction, which aligns with Aramco’s strategy to expand its downstream presence in high-value markets, advance its liquids-to-chemicals programme, and secure long-term crude oil supply agreements.

Aramco is making investments worldwide to capture a more significant share of the value chain. In 2023 the state firm completed the purchase of a 10% stake in Shenzhen-listed Rongsheng Petrochemical for US$3.4 billion.

Hengli Petrochemical owns and operates a 400,000 barrel per day refinery and integrated chemicals complex in Liaoning, as well as plants and production facilities in Jiangsu and Guangdong.

 “This MoU supports our efforts to grow our global downstream footprint," says Aramco downstream president Mohammed Y. Al Qahtani. "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.”