Saudi Aramco expanded its presence in China through a series of acquisition
In July 2023, Aramco successfully acquired a 10% stake in Rongsheng Petrochemical for $3.4 billion with an attached 20-year contract to supply crude oil to Rongsheng’s subsidiary – Zhejiang Petrochemical.
Saudi Arabia oil and gas giant – Saudi Aramco actively looking to expand its presence in the Chinese petrochemical market through a series of share acquisitions. Over the past months, the company entered discussions with three petrochemical companies and has closed one transaction.
|
Companies |
Discussed Stake |
Refinery Capacity (bpd) |
Status |
|
Hengli Petrochemical |
10% |
400,000 |
M.O.U |
|
Shandong Yulong Petrochemical |
10% |
400,000 |
M.O.U |
|
Jiangsu Shenghong Petrochemical |
10% |
320,000 |
M.O.U |
|
Rongsheng Petrochemical |
10% |
800,000 |
Purchased |
On 22 April 2024, Aramco signed a memorandum of understanding with Hengli Petrochemical to acquire a 10% stake in the 400,000 barrels per day refinery that has integrated petrochemical units, securing a long-term market for its oil. The share is estimated at $1.5 billion based on the current market value.
Hengli Petrochemical own two PP plants with a combined capacity of 850,000 tons/year and an HDPE line with an annual output of 400,000 tons/year.
In July 2023, Aramco successfully acquired a 10% stake in Rongsheng Petrochemical for $3.4 billion with an attached 20-year contract to supply crude oil to Rongsheng’s subsidiary – Zhejiang Petrochemical.
The company has also signed a MOU with Shandong Yulong Petrochemical for a 10% ownership coupled with a contract to supply the Chinese maker with crude oil and other feedstocks.