Saudi Aramco and Sinopec have initiated construction on a refining and petrochemical complex in the Fujian province of China.
This project, Aramco’s second major joint venture (JV) with a Chinese state oil entity, is expected to cost 71.1bn yuan ($9.82bn), according to Reuters.
Located in the Gulei industrial park in Zhangzhou city, the new venture features a refinery with a capacity of 16mtpa, or 320,000 barrels per day, along with a 1.5mtpa ethylene plant and a 2mtpa paraxylene facility.
It also includes a 300,000-tonne crude oil terminal, according to a statement from Sinopec.
Fujian Petrochemical, a JV between Sinopec and the Fujian Government, will hold a 50% stake in the project. Saudi Aramco and Sinopec will each own 25%.
The project is expected to be operational by 2030, supplying 5mtpa of petrochemical feedstock to the Gulei Petrochemical Base.
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Aramco downstream president Mohammed Y. Al Qahtani said: “Building on our strong relationships with both SINOPEC and Fujian Petrochemical, today’s ground-breaking further expands Aramco’s growing downstream investment portfolio in China.
“We will supply in excess of one million barrels per day of our crude oil to these high chemical conversion assets in China, reinforcing Aramco’s role as a reliable and long-term partner in China’s development.
“This also advances our liquids-to-chemicals strategy, through which we intend to direct more of our crude towards helping meet rising global petrochemicals demand.”
SINOPEC chairman Ma Yongsheng said: “Both Sinopec and Aramco are committed to promoting the high-quality development of the petroleum and petrochemical industry.
“Aramco’s participation supplies long-term reliable and competitive feedstock for the project and further boosts the healthy development of Gulei petrochemical base.”
