BUSINESS

Hengli Petrochemical Denies Iran Links After U.S. Sanctions Refining Unit

Published: Apr. 27, 2026 5:37 p.m. GMT+8

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A Hengli Petrochemical booth in Shanghai. Photo: VCG

China’s Hengli Petrochemical Co. Ltd. (600346.SH) denied any trade ties with Iran after the U.S. government sanctioned its core refining subsidiary over alleged purchases of Iranian crude oil.

In a stock exchange filing dated Monday, Hengli Petrochemical also said its suppliers have assured it that the origins of its crude oil do not fall under the scope of U.S. sanctions.

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Hengli Petrochemical (600346.SH) denied Iran trade ties after US OFAC sanctioned its Dalian Refinery subsidiary for alleged billions in Iranian oil purchases.
OFAC added subsidiary to SDN list, freezing US assets/dollar access; firm condemned action, hired lawyers, uses yuan settlements, holds 3+ months reserves.
20M t/y complex (400k bpd), China's 2nd-largest, runs steadily; follows China's April anti-sanctions rules amid prior OFAC hits on other refiners.

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Who’s Who

Hengli Petrochemical Co. Ltd.: Hengli Petrochemical Co. Ltd. (600346.SH) denied trade ties with Iran after the US sanctioned its Dalian Refinery subsidiary for alleged purchases of Iranian crude oil. The company condemned the action, hired legal experts for delisting, and affirmed steady operations with 3+ months of reserves. It operates China's second-largest 20M ton/year refining complex and plans yuan settlements. (68 words)

Hengli Petrochemical (Dalian) Refinery Co. Ltd.: Hengli Petrochemical (Dalian) Refinery Co. Ltd., core subsidiary of Hengli Petrochemical (600346.SH), was added to U.S. OFAC's SDN list for allegedly buying billions in Iranian crude oil, one of Iran's largest customers. It runs China's second-largest 20M ton/year (400,000 bpd) refining-petrochem complex, producing gasoline, diesel, kerosene, and chemicals. Parent denies ties, challenges sanctions legally.

Shandong Shouguang Luqing Petrochemical Co. Ltd.: Shandong Shouguang Luqing Petrochemical Co. Ltd. was sanctioned by OFAC in March 2025 for purchasing about $500 million in Iranian oil.

Shandong Shengxing Chemical Co. Ltd.: Shandong Shengxing Chemical Co. Ltd. was sanctioned by U.S. OFAC on April 16, 2025, for Iranian oil purchases exceeding $1 billion.

Hebei Xinhai Chemical Group Co. Ltd.: On May 8, OFAC sanctioned Hebei Xinhai Chemical Group Co. Ltd. for buying or facilitating the transport of hundreds of millions of dollars’ worth of Iranian oil, alongside three Shandong port operators.

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