Chinese state-owned energy giant China Petroleum & Chemical Corp. (Sinopec) and Saudi Arabia's national oil company, Saudi Aramco, alongwith Sinopec's jv with Fujian Petrochemical Industrial Group - Fujian Petrochemical Company Ltd. (FPCL), have launched a joint venture to build and operate a RMB 71.1-bn ($9.8-bn) refining and petrochemical complex in China's south-eastern Fujian province.
The new jv company, Fujian Sinopec Aramco Refining & Petrochemical Co. Ltd., will spearhead the second phase of the Gulei refining and petrochemical integration project. The development includes a refinery capable of processing 16 million tpa of crude, a 1.5 million tpa ethylene unit; a paraxylene and downstream derivatives capacity of 2 million tpa; and a 300 000 tonnes capacity crude oil terminal. The new complex, which was first announced in November 2024, is expected to be operational by the end of 2030.
Speaking at the event, Mr. Mohammed Y. Al Qahtani, Aramco Downstream President, said, "This project represents further progress in Aramco's strategic downstream expansion, which aims to capture additional value through both portfolio diversification and business integration. We see significant petrochemical demand growth potential in China, and we are delighted to be an active participant in this key market."
FPCL will hold an equity interest of 50% in the new jv, with Aramco and Sinopec each holding 25% stakes.
The project represents the third major manufacturing collaboration between Aramco and Sinopec in China, following the launch of the Fujian Refining & Petrochemical Company (FREP) project in 2007, and Sinopec SABIC Tianjing Petrochemical Company (SSTPC) in 2009. It is also the fifth joint venture between Aramco and Sinopec, extending their cooperation in refining and chemicals both in China and internationally.