Saudi Aramco Agrees 2019 Supply Deal with China’s Hengli Petchem

Sunday, 11th November 2018
by Editorial Team

030629-N-4790M-002 Central Command Area of Responsibility (Jun. 29, 2003) — Commercial oil tanker AbQaiq readies itself to receive oil at Mina-Al-Bkar Oil terminal (MABOT), an off shore Iraqi oil installation. AbQaiq is the first commercial vessel to receive a post-war shipment of crude oil for export at Mabot. AbQaiq is scheduled to take on an estimated 2 million barrels of crude oil. U.S. Navy and coalition forces are helping to provide security, enforcing an exclusionary perimeter around the terminal. U.S. Navy photo by Photographer’s Mate 2nd Class Andrew M. Meyers. (RELEASED)

Saudi Aramco has agreed to supply 130,000 barrels per day (b/d) of crude to private Chinese chemical group Hengli Petchem for 2019, Aramco’s second major marketing alliance with a private Chinese refiner, Reuters reported.

The deal was signed at the China International Import Expo in Shanghai and is worth an estimated $3.6 billion based on current market prices, a Hengli release stated.

Earlier this month, Aramco also signed a 170,000 b/d crude supply term agreement with private Chinese refiner Zhejiang Rongsheng Group. Under the agreement, Aramco also intends to take a stake in the Rongsheng refinery in east China.

Hengli Petrochemical is expected to test run its greenfield 400,000 b/d refinery in northeastern port city Dalian at the end of November.