{"id":7901,"date":"2023-09-28T12:35:28","date_gmt":"2023-09-28T12:35:28","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=7901"},"modified":"2023-09-28T12:35:28","modified_gmt":"2023-09-28T12:35:28","slug":"aramco-in-talks-to-invest-in-chinas-shenghong-petrochemical","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/7901\/","title":{"rendered":"Aramco in talks to invest in China\u2019s Shenghong Petrochemical"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0If the deal materialises, Aramco will supply crude oil and other feedstocks to Shenghong Petrochemical.<\/p>\n

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Saudi Aramco and Jiangsu Eastern Shenghong (Eastern Shenghong) have\u00a0signed a cooperation framework agreement<\/a>\u00a0to hold talks on Aramco\u2019s investment in Eastern Shenghong\u2019s petrochemical subsidiary.<\/p>\n

The Middle East energy and chemicals giant will potentially acquire a 10% equity stake in Jiangsu Shenghong Petrochemical Industry Group (Shenghong Petrochemical).<\/p>\n

Aramco did not disclose the financial details of the potential deal, which will be subject to due diligence and regulatory approvals.<\/p>\n

Through its wholly owned subsidiaries, Shenghong Petrochemical owns and runs a 320 million-barrels-per-day (mbd) integrated refinery and petrochemicals complex.<\/p>\n

It also operates a methanol-to-olefins and derivatives facility, as well as a plant for producing pure terephthalic acid.<\/p>\n

These facilities are at the Xuwei Petrochemical Industrial Park in Jiangsu province.<\/p>\n

Under the agreement, it is expected that Aramco will supply crude oil and potentially other feedstocks to Shenghong Petrochemical.<\/p>\n

Subject to future negotiations and the implementation of binding agreements, Aramco and Shenghong Petrochemical also hope to work together on the development of a sizeable expansion project.<\/p>\n

Aramco downstream president Mohammed Y Al Qahtani said: \u201cAramco looks forward to partnering with Eastern Shenghong to supply the reliable energy required for China\u2019s long-term growth, development and energy security.<\/p>\n

\u201cThe signing of this cooperation framework agreement is another significant milestone in Aramco\u2019s downstream strategy to increase conversion of Arabian crude oil to chemicals and to expand into the critically important Chinese market. We see China as an important partner not only for today but for decades to come.\u201d<\/p>\n

In July this year, Aramco\u00a0acquired a 10% stake\u00a0in China\u2019s Rongsheng Petrochemical (Rongsheng).<\/p>\n

The 24.6bn yuan ($3.4bn) Rongsheng deal also forms part of Aramco\u2019s plans to expand operations in China.<\/p>\n<\/div>\n<\/div>\n<\/section>\n

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