Aramco, a global leader in the energy and chemical industry, has announced the signing of a memorandum of understanding (MoU) with Shandong Yulong Petrochemical Co. Ltd., Nanshan Group Co. Ltd., and Shandong Energy Group Co. Ltd.

The MoU aims to facilitate discussions regarding the potential acquisition of a 10% strategic equity interest in Shandong Yulong, subject to due diligence, negotiation of transaction documents, and regulatory clearance.

Shandong Yulong Petrochemical Co., Ltd. is currently in the process of constructing a refining and petrochemicals complex in Longkou, Yantai City, located in China’s Shandong Province. The complex is designed to process approximately 400,000 barrels per day (bpd) of crude oil and produce a significant volume of petrochemicals and derivatives.

Mohammed Y. Al Qahtani, Aramco Downstream President, said: “As one of China’s largest refining and chemical centers, Aramco values Shandong for its current strength and future prospects. We believe this collaboration has the potential to enable all parties to contribute to China’s energy security and development and aid in navigating the energy transition. With Aramco’s long track record as a reliable supplier of energy to China and the expertise and commitment of Shandong Province, we envision a prosperous future together.”

The MoU signing follows last month’s announcement that Aramco had signed a cooperation framework agreement with Jiangsu Eastern Shenghong Co. Ltd. to also facilitate discussions relating to the possible acquisition by Aramco of a 10% strategic equity interest in Jiangsu Shenghong Petrochemical Industry Group Co., Ltd., a wholly owned subsidiary of Eastern Shenghong, subject to due diligence, negotiation of transaction documents, and required regulatory clearance.