Today, Wednesday, Saudi Arabian Oil Company (Saudi Aramco) signed a framework cooperation agreement to enter into consultations related to the potential acquisition of a 10% strategic stake in Jiangsu Xinghong Petrochemical Industry Group Co., Ltd. Xinghong Petrochemical Industry Co., Ltd., a wholly-owned subsidiary of Eastern Xinghong Company, listed on the Shenzhen Stock Exchange.
Aramco explained, according to a statement today, Wednesday, that according to the agreement, it intends to supply Shenghong Petrochemical Company with crude oil and other raw materials. Saudi Aramco and Shenghong Petrochemical Company also intend to cooperate to implement a large expansion project, subject to what the consultations between the two parties will lead to and the conclusion of binding final agreements.
Shenghong Petrochemical Company owns and operates an integrated refining and petrochemical complex with a production capacity of 320 million barrels per day, a complex for converting methanol to olefins and its derivatives, and, through its wholly-owned subsidiaries, a facility for the production of purified terephthalic acid. Its facilities are located in a petrochemical industry park in Jiangsu Province.
Mohammed Yahya Al-Qahtani, President of Refining, Chemicals and Marketing at Saudi Aramco, said: Through the partnership with Eastern Xinghong, Saudi Aramco looks forward to providing the reliable energy necessary to achieve growth, development and sustainability of energy security in China in the long term.
He continued: Signing the framework cooperation agreement is an important step within our strategy at Saudi Aramco in the field of refining, chemicals and marketing, which aims to increase the company’s ability to convert Arab crude oil into chemicals. It is also in line with our vision to expand in the Chinese market, which is one of the world’s leading markets in the field of energy, and we consider China is an important partner today and for the coming decades.
Eastern Xinghong is one of the leading and integrated companies in the field of energy and chemicals, and is interested in adopting advanced technologies in its new businesses in the fields of energy and materials.
