Saudi Aramco, China’s Hengli Petchem agree 130,000 bpd oil supply deal

China’s private chemical group Hengli Petrochemical said it has entered an annual crude purchase deal with Saudi Aramco for 2019 supplies of 130,000 barrels per day, which marks the top OPEC producer’s second major marketing alliance with a private Chinese refiner.

The deal was signed this week at the China International Import Expo in Shanghai and is worth $3.6bn based on current market price, according to a Hengli release seen by Reuters on Saturday and confirmed by a Hengli spokesman.

This is Aramco’s second major crude supply pact with a private Chinese refiner.

Aramco earlier agreed to supply Zhejiang Rongsheng Group 170,000 bpd of crude oil under a term agreement with an intent also to take a stake in the Rongsheng refinery in east China.

Hengli Petrochemical is expected to test run its greenfield 400,000 bpd refinery in northeastern port city Dalian around end of November.