Aramco, SINOPEC, And Fujian Petrochemical Initiate Major Refining And Petrochemical Project In China

Aramco, a major player in the global energy and chemicals sector, has partnered with China Petroleum & Chemical Corporation (SINOPEC) and Fujian Petrochemical Company Limited (FPCL) to initiate construction on a new refining and petrochemical complex in Fujian Province, China. This facility will feature a 16 million tons-per-year oil refining unit, capable of processing 320,000 barrels daily.

The complex will also include a 1.5 million tons-per-year ethylene unit, a two million tons per year paraxylene capacity, and downstream derivatives. Additionally, there will be a 300,000 tons crude oil terminal. FPCL is a joint venture equally owned by SINOPEC and Fujian Petrochemical Industrial Group Company. They will hold a 50% stake in the new complex, while Aramco and SINOPEC each own 25%.

Mohammed Y. Al-Qahtani, President of Aramco Downstream, highlighted the significance of this project for Aramco's investment portfolio in China. He stated: "Building on our strong relationships with both SINOPEC and Fujian Petrochemical, today's groundbreaking further expands Aramco's growing downstream investment portfolio in China." The project aims to be fully operational by the end of 2030.

Al-Qahtani also noted that Aramco plans to supply over one million barrels per day of crude oil to these high-chemical-conversion assets in China. This move strengthens Aramco's position as a dependable partner in China's development. He added: "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 expressed commitment to advancing the petroleum and petrochemical industry alongside Aramco. He remarked: "Both SINOPEC and Aramco are committed to promoting the high-quality development of the petroleum and petrochemical industry." The collaboration provides long-term reliable feedstock for the project.

Yongsheng emphasized that this partnership enhances the growth of Gulei Petrochemical Base. He said: "Successful cooperation in this project marks a new milestone in the China-Saudi all-weather strategic partnership." The focus aligns with China's dual circulation strategy aimed at boosting domestic economic activity.

This venture represents a significant step forward for both companies as they strengthen their ties within the energy sector. By combining resources and expertise, they aim to contribute significantly to meeting global petrochemicals demand while supporting China's economic strategies.

With inputs from SPA