Aramco and Eastern Shenghong sign cooperation framework agreement

Aramco and Eastern Shenghong sign cooperation framework agreement
• Aramco intends to become strategic investor in Shenghong Petrochemical 
• Agreement strives to strengthen Aramco’s relationship with Eastern Shenghong 

On Wednesday, September 27, Aram¬co and Jiangsu Eastern Shenghong Co. Ltd. (Eastern Shenghong) signed a cooperation framework agreement to facilitate discussions relating to the possible acquisition by Aramco of a 10% strategic equity interest in Jiangsu Shenghong Petrochemical Industry Group Co. Ltd. (Shenghong Petrochemi¬cal), a whollyowned subsidiary of Eastern Shenghong, subject to due diligence and required regulatory clearances. 

Shenghong Petrochemical owns and operates a 320,000 barrel per day integrated refinery and petrochemicals complex, a methanol-to-olefins and derivatives complex, as well as a puri¬fied terephthalic acid production facility through its whollyowned subsidiaries. The facilities are co-located in the Xuwei Petrochemical Industrial Park in Jiangsu Province. 

Under the Cooperation Framework Agreement, it is intended that Aramco would supply Shenghong Petrochemical with crude oil and potentially other feedstocks. Aramco and Shenghong Petrochemical also intend to cooperate on the development of a large expan¬sion project, subject to further discus¬sions between the parties and the execution of definitive agreements. 

Mohammed Y. Al Qahtani, Aramco Downstream president, said: “Aramco looks forward to partnering with Eastern Shenghong to supply the reliable energy required for China’s long-term growth, development, and energy security. The signing of this cooperation framework agreement is another significant milestone in Aram¬co’s 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.” 

Eastern Shenghong, which is listed on the Shenzhen Stock Exchange, is a leading, vertically integrated energy and chemicals enterprise, which de¬ploys advanced technologies in its new energy and materials businesses. 

Caption of the top photo: At the signing ceremony, front row, from left: Chairman of Shenghong Holding Group, Miao Hangen, and Aramco executive vice president of Products and Customers, Yasser M. Mufti. Back row, from left: Jiangsu Provincial Development and Reform Commission deputy director general Wang Rongfei; Jiangsu Province executive vice Governor Ma Xin; Aramco president and CEO Amin Nasser; and Aramco Downstream president Mohammed Y. Al Qahtani.

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