Saudi Aramco has launched the construction phase of a refinery and petrochemical complex in the Chinese province of Fujian, Arab News reported.
Giant Complex
In collaboration with China Petrochemical & Chemical Corp. and Fujian Petrochemical Co., the complex will include an oil refinery with a capacity of 320,000 barrels per day.
Set to start operations by the end of 2030, the project will feature a 1.5 million-tonne-per-year ethylene unit, a 2 million-tonne paraxylene unit with downstream derivatives capacity, and a 300,000-tonne crude oil terminal.
In launching this giant project, Aramco is not only strengthening its ties with China but also boosting its position as a key player in the energy sector around the world.
Positive Impacts
Therefore, the new venture will make a real difference in supporting Saudi Arabia’s thriving economic growth.
“Building on our strong relationships with both Sinopec and Fujian Petrochemical, today’s groundbreaking further expands Aramco’s growing downstream investment portfolio in China,” said Mohammed Al-Qahtani, Aramco’s Downstream President.
Al-Qahtani explained that Aramco will supply more than 1 million barrels per day of crude oil to the high chemical conversion assets in China.
As a consequence, the Saudi energy giant will solidify its pivotal 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 toward helping meet rising global petrochemicals demand,” the President added.
Chiefly, the newly launched complex will provide the Gulei Petrochemical Base with approximately 5 million tonnes of feedstock per year.
Joint Venture
Indeed, the facility will be a joint venture as FPCL holds a 50% stake in the complex. FPCL represents a collaboration between Sinopec and Fujian Petrochemical Industrial Group Co.
Accordingly, Aramco and Sinopec will each own a 25% share.
Significant Milestone
The Chairman of Sinopec, Ma Yongsheng, stressed that the Fujian project represents a significant milestone in the Saudi-Chinese relations.
“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,” said Yongsheng.
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