Aramco, Sinopec, FPCL break ground on new petchem project in China

A view of the groundbreaking ceremony

Saudi Aramco, China Petroleum and Chemical Corporation (Sinopec), and Fujian Petrochemical Company Ltd. (FPCL) broke ground on a new integrated refining and petrochemical complex in Gulei, Fujian Province, China.

In a statement picked up by Argaam, the company said the project will feature a 16 million tons-per-year oil refining unit (equivalent to 320,000 barrels per day (bpd)), a 1.5 million tons-per-year ethylene unit, a 2 million tons-per-year paraxylene unit with downstream derivatives, and a 300,000-ton crude oil terminal.

For more news and details on the projects

FPCL, a 50:50 joint venture between Sinopec and Fujian Petrochemical Industrial Group Co., will own a 50% stake in the complex, while Saudi Aramco and Sinopec will each hold a 25% stake.

The facility is expected to be fully operational by the end of 2030, the statement noted.

Mohammed Al Qahtani, Aramco's Downstream President, commented: “Today’s groundbreaking further expands Aramco’s growing downstream investment portfolio in China. We will supply in excess of one million bpd of our crude oil to these high chemical conversion assets in China.”

“This reinforces Aramco’s role as a reliable and long-term partner in China’s development and advances our liquids-to-chemicals strategy, through which we aim to direct more of our crude toward meeting the rising global demand for petrochemicals,” he added.