Hengli Scales Back Singapore Trading Operations After US Sanctions

Hengli Petrochemical International, the Singapore-based trading division connected to Hengli Petrochemical’s refining business in China, is reportedly preparing to reduce and gradually shut down its operations after recent US sanctions related to alleged Iranian oil dealings.

According to market reports, the Singapore unit played an important role in handling crude oil and petrochemical trading activities for Hengli’s refining and chemical operations. The company is now expected to begin winding down business activities later this month following growing pressure from the sanctions.

Before the restrictions were announced, the Singapore operation reportedly employed around 100 workers. Sources indicate that some employees have already been laid off, while others are being reassigned to different Hengli-linked businesses that are not affected by the US measures.

The trading arm had been heavily involved in sourcing feedstock and organizing crude shipments for one of China’s largest privately owned refining groups.

The restructuring comes after the US Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions last month on Hengli Petrochemical (Dalian) Refinery over alleged involvement in Iranian oil transactions. Hengli has denied the accusations.

Following the sanctions, the ownership structure of the Singapore trading company was reportedly revised. State-linked Dalian Changxing International Trade acquired a 95% stake in the business, while the sanctioned refinery’s ownership was reduced to 5%.

The latest developments highlight the growing impact of US sanctions on global energy trading operations linked to Iranian crude flows and Chinese refining companies.

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