The second phase of the Fujian Gulei refining and petrochemical integration project kicked off construction on Monday in Fujian province, marking the province's largest industrial investment to date.
The project, a collaboration between China Petrochemical Corp (Sinopec), Saudi Arabian Oil Company (Saudi Aramco) and Fujian Petrochemical Company Limited (FPCL), is expected to be fully operational by 2030, said Sinopec.
The facility plans to have a 16 million tons-per-year oil refining unit (320,000 barrels per day), a 1.5 million tons-per-year ethylene unit, a two million tons paraxylene and downstream derivatives capacity and a 300,000 tons crude oil terminal, it said.
FPCL, a 50/50 joint venture between Sinopec and Fujian Petrochemical Industrial Group Company, will own a 50 percent stake in the complex, with Saudi Aramco and Sinopec each taking a 25 percent stake.
"This project marks another major achievement in the commitment to advance opening up at a higher level, to seize opportunities of the times, and to develop new quality productive forces, "said Ma Yongsheng, chairman of Sinopec.
Mohammed Y. Al Qahtani, Aramco downstream president, said the project would further expand Saudi Aramco's growing downstream investment portfolio in China.
"We will supply in excess of one million barrels per day of our crude oil to these high chemical conversion assets in China, reinforcing Aramco's role as a reliable and long-term partner in China's development," he said.
"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."
