Aramco, Sinopec Commenced Construction of New $10 Billion Petrochem Complex

SEATTLE (Oil Monster): Sinopec Corporation and Saudi Aramco declared that they had begun building a new petrochemical complex and refinery in the province of Fujian in southeast China. This is another step in Aramco's plans to grow its downstream business outside of Saudi Arabia and represents a sizable investment in the nation's petrochem growth drive.

The estimated cost of the facility is $9.82 million. This is Aramco's second significant joint venture with Chinese firms in the refining and petrochemical industries. The facility, which is situated in Zhangzhou's Gulei Industrial Park, includes a refinery that produces 320,000 barrels per day, a 1.5 million tpy ethylene plant, a 2 million paraxylene facility, and a crude oil terminal that can handle 300,000 tons.

In collaboration with the Fujian government, Sinopec and Aramco signed a preliminary deal two years ago to construct Fujian Petrochemical. By 2030, this project is expected to be operational. Sinopec opened a brand-new 1.2 million tpy ethylene complex in northern China last week. Additionally, it is already constructing a second plant of a comparable size in Zhenhai, east China.

The aforementioned initiatives will propel China's goal of achieving petrochemical self-sufficiency.

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