Saudi Aramco in Talks to Acquire 10% Stake in China's Hengli Petrochemical

Saudi Aramco entered into discussions with China’s Hengli Group Co., Ltd. regarding the potential acquisition of a 10% stake in Hengli Petrochemical Co., Ltd. (SPA)
Saudi Aramco entered into discussions with China’s Hengli Group Co., Ltd. regarding the potential acquisition of a 10% stake in Hengli Petrochemical Co., Ltd. (SPA)
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Saudi Aramco in Talks to Acquire 10% Stake in China's Hengli Petrochemical

Saudi Aramco entered into discussions with China’s Hengli Group Co., Ltd. regarding the potential acquisition of a 10% stake in Hengli Petrochemical Co., Ltd. (SPA)
Saudi Aramco entered into discussions with China’s Hengli Group Co., Ltd. regarding the potential acquisition of a 10% stake in Hengli Petrochemical Co., Ltd. (SPA)

Saudi Aramco, one of the world’s leading integrated energy and chemicals companies, said on Monday that it has entered into discussions with China’s Hengli Group Co., Ltd. (Hengli Group) regarding the potential acquisition of a 10% stake in Hengli Petrochemical Co., Ltd. (Hengli Petrochemical), subject to due diligence and required regulatory clearances.

Aramco and Hengli Group signed on Monday a memorandum of understanding regarding the proposed transaction, which "aligns with Aramco’s strategy to expand its downstream presence in key high-value markets, advance its liquids-to-chemicals program, and secure long-term crude oil supply agreements", said Aramco in a statement.

Hengli Petrochemical, a controlled subsidiary of Hengli Group, owns and operates a 400,000 barrel per day refinery and integrated chemicals complex in Liaoning Province, China, and several plants and production facilities in Jiangsu and Guangdong Provinces.

Aramco Downstream President Mohammed Al Qahtani said: "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," he added.



Maritime Disruptions Cast Shadow on Global Energy Security

A container ship passing through the Suez Canal (Suez Canal Official Website)
A container ship passing through the Suez Canal (Suez Canal Official Website)
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Maritime Disruptions Cast Shadow on Global Energy Security

A container ship passing through the Suez Canal (Suez Canal Official Website)
A container ship passing through the Suez Canal (Suez Canal Official Website)

As the world focuses on the Red Sea due to rising attacks on passing ships, experts warn of growing threats to the region's shipping lanes, which could impact global energy security.

Some link the disruptions to regional geopolitical changes, while others believe they are part of a planned strategy due to the area’s natural resources.

Recently, a commercial ship off Yemen’s coast issued a distress call after a missile attack.

This incident coincided with the first international conference on energy security through maritime safety kicking off in Cairo, organized by the Saif Bin Helal Center for Studies and Research in Energy Sciences.

The conference stressed that secure waterways are essential for energy exports and development.

“The region is unstable. Geostrategic, economic, and security challenges are mounting,” warned former Arab League Secretary-General and Egyptian Foreign Minister Amr Moussa at the opening of the conference.

“Disruptions in maritime routes threaten the stability, sovereignty, and wealth of nations. These are broad challenges, not just Red Sea issues—they’re reshaping global interests,” he added.

With this warning, he highlighted the ongoing turmoil in the Suez Canal, Bab el-Mandeb, and the Black Sea.

Moussa also warned about the risks of alternative routes being studied by various countries.

“These routes will serve specific national interests, not the security of international trade,” he cautioned.

On his part, Former Egyptian Petroleum Minister Osama Kamal stressed the vital role of the region’s waterways, especially with Gulf nations being major energy players worldwide.

He pointed out that without energy, there can be no development.

As the conference continued, British security firm Ambrey reported that a merchant vessel off the Yemeni coast took on water and tilted to one side after being targeted with three missiles.

The vessel issued a distress call stating it had sustained damage to the cargo hold and was taking on water approximately 54 nautical miles southwest of Yemen’s Hodeidah, Ambrey added.