Aramco invests in Shandong oil production and supply assets

Aramco, Nanshan Group, Shandong Energy Group, and Shandong Yulong Petrochemical have signed a Memorandum of Understanding to facilitate discussions relating to the possible acquisition by Aramco of a 10% strategic equity interest in Shandong Yulong Petrochemical.

Shandong Yulong is currently in the process of completing the construction of a refining and petrochemicals complex that is designed to process around 400,000 barrels per day of crude oil and produce a large volume of petrochemicals and derivatives. The facilities are located at Longkou, Yantai in Shandong.

Aramco would potentially supply Shandong Yulong with crude oil and other feedstock as outlined in the MoU.

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 potential to enable all parties to contribute to China’s energy security and development, and aid in navigating the energy transition.”

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