On Monday, the companies signed a Memorandum of Understanding (MoU) regarding the proposed transaction, which Aramco said is in line with the company’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.

Hengli Petrochemical, a subsidiary of Hengli Group, owns and operates a 400,000 b/d refinery and integrated chemicals complex in Liaoning Province, China, and several plants and production facilities in Jiangsu and Guangdong provinces.

Mohammed Y. Al Qahtani, Aramco’s Downstream president, 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.”