Aramco, China Petroleum & Chemical Corporation (SINOPEC), and Fujian Petrochemical (FPCL) have initiated the construction of the Fujian Gulei Phase II Integrated Refining and Petrochemical Project in China.
Located in Zhangzhou City, Fujian Province, the project has an estimated investment of CNY71.1bn ($9.82bn). Fujian Gulei Phase II represents Aramco’s second significant refining and petrochemical partnership with a Chinese state-owned oil company.
The facility, located in the Gulei Industrial Park, is designed to include a crude oil refining unit capable of processing 16 million tons per year, equivalent to 320,000 barrels per day.
Additionally, the Fujian Gulei Phase II complex will house a 1.5 million tons-per-year ethylene production unit, a two million tons-per-year paraxylene unit, and downstream derivatives facilities.
A crude oil terminal with a capacity of 300,000 tons will also be constructed to support the operation.
Ownership of the Fujian Gulei Phase II project is divided, with FPCL holding a 50% stake. FPCL is a joint venture equally owned by SINOPEC and Fujian Petrochemical Industrial Group.
Aramco and SINOPEC will each hold a 25% share in the Fujian Gulei Phase II complex. The facility is scheduled to become fully operational by the end of 2030.
Aramco downstream president Mohammed Al Qahtani said: “Building on our strong relationships with both SINOPEC and Fujian Petrochemical, today’s groundbreaking further expands 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. 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.”
The development follows the signing of a heads of agreement in December 2022 between Aramco and SINOPEC.
The Fujian Gulei Phase II project is an expansion of SINOPEC’s smaller-scale ethylene complex, which became operational in 2021 in partnership with a Taiwanese investment group.
Upon completion, the Fujian Gulei Phase II facility is expected to supply approximately five million tons of feedstock annually to the Gulei Petrochemical Base.
SINOPEC chairman Ma Yongsheng said: “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.
“Successful cooperation in this project marks a new milestone in the China-Saudi all-weather strategic partnership, with a focus on greater domestic circulation and in line with the dual circulation strategy.”
