Aramco, SINOPEC and Fujian Petrochemical break ground on a new refinery and petrochemical project in China

2024-11-18 21:06:00

Aramco, one of the world’s leading integrated energy and chemical companies, China Petroleum & Chemical Corporation (SINOPEC) and Fujian Petrochemical Company Limited (FPCL) today broke ground on a new integrated refining and petrochemical complex in Fujian Province, China.

  • The greenfield project is expected to be fully operational by the end of 2030
  • Integrated refinery and petrochemical project aims to maximize chemical production
  • The complex is expected to supply around five million tons of raw material per year to the Gulei Petrochemical Base

The facility is expected to have a 16 million tonne per annum (320,000 barrels per day) oil refinery, a 1.5 million tonne per annum ethylene plant, a two million tonne paraxylene capacity and a downstream derivatives capacity as well as a Crude oil terminal with 300,000 tons. FPCL, a 50:50 joint venture between SINOPEC and Fujian Petrochemical Industrial Group Company, will have a 50% stake in the complex, while Aramco and SINOPEC will each take a 25% stake. The project is expected to be fully functional by the end of 2030.

Mohammed Y. Al Qahtani, Aramco Downstream President, said: “Building on our strong relationships with SINOPEC and Fujian Petrochemical, today’s groundbreaking further expands Aramco’s growing downstream investment portfolio in China. We will deliver more than one million barrels per day of our crude oil to these high chemical conversion facilities in China, strengthening Aramco’s role as a reliable and long-term partner in China’s development. This is also a step forward in our liquids-to-chemicals strategy to use more of our crude oil to meet increasing global demand for petrochemical products.”

Ma Yongsheng, Chairman of SINOPEC, said: “Both SINOPEC and Aramco are committed to promoting high-quality development of the petroleum and petrochemical industries. Aramco’s participation provides long-term reliable and competitive raw materials for the project and further promotes the healthy development of Gulei’s petrochemical base. The successful cooperation on this project represents a new milestone in the all-weather strategic partnership between China and Saudi Arabia, with a focus on increased domestic traffic and parallel traffic strategy.”

@aramco

Information about Aramco

Aramco is a global, integrated energy and chemicals company. Our actions are guided by the belief that energy opens up opportunities. We extract one in eight barrels of global oil production and develop pioneering energy technologies – in all our activities we dedicate ourselves to the goal of initiating positive change. We are committed to making our resources more reliable, sustainable and useful. In this way, we want to contribute to stability and long-term growth worldwide. www.aramco.com

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What are the key features of‌ the‍ new integrated refining‍ and petrochemical complex being built ‍by Aramco in ​Fujian​ Province, ‍China?

**Interview⁣ with ​Mohammed Y. Al‌ Qahtani, Aramco Downstream‌ President**

**Interviewer:** Thank you for joining us​ today, Mr. Al Qahtani. Aramco recently ‌announced the groundbreaking of a significant new integrated refining and petrochemical ⁣complex in‍ Fujian Province, China. Can you share⁢ more about what this ⁣project entails?

**Al‍ Qahtani:** Thank you for having me.⁣ This‌ project ⁣represents ​a milestone​ in our efforts to‍ expand Aramco’s downstream investments in China. The integrated⁤ complex will feature a refinery capable‍ of processing 16 million tonnes of crude oil per ⁣annum, alongside an ethylene plant and paraxylene capabilities, among others. It’s designed to maximize chemical production and is expected to supply ​approximately‌ five million⁢ tons ⁢of raw ‍materials⁢ to the Gulei Petrochemical ​Base each year.

**Interviewer:** That sounds promising. What strategic‌ advantages⁣ do you ​foresee for Aramco and⁣ SINOPEC with this partnership?

**Al Qahtani:** Our ⁤collaboration with SINOPEC and⁤ Fujian Petrochemical exemplifies our commitment to enhancing the petroleum⁤ and⁣ petrochemical sectors. By delivering over one million barrels of crude oil per​ day to⁤ these facilities, we not only support domestic ⁢chemical production ‌in China but also ​reinforce Aramco’s role​ as a crucial and reliable ‌partner ‍in the region’s industrial⁤ development.

**Interviewer:** The facility is expected to be operational by the end of 2030. What are the anticipated impacts of ‍this ​project on the global‍ petrochemicals⁣ market?

**Al Qahtani:** As global demand for petrochemical products continues to ​rise, this complex will​ play a ​vital ⁢role in ‍meeting that demand. By leveraging advanced technology ‌and increasing the efficiency of⁣ chemical conversion, we aim to not only meet ⁣market needs but also enhance the competitiveness of⁣ the region’s ‌petrochemical industry.

**Interviewer:** Mr. Al Qahtani, how does this ⁤project fit into ​Aramco’s broader sustainability goals, particularly regarding environmental concerns?

**Al Qahtani:** Our liquids-to-chemicals strategy emphasizes⁢ the sustainable use of⁣ our crude oil. This complex ⁢is designed with advanced technologies​ that improve energy efficiency‌ and ​reduce emissions. We are committed to achieving our environmental, social,⁣ and governance objectives and ensuring that our operations align ‌with global efforts to ​combat⁢ climate change.

**Interviewer:** Thank you for your⁤ insights, Mr. Al Qahtani. We look forward to⁣ seeing the progress on this important project.

**Al Qahtani:** Thank you for the ⁤opportunity to discuss this exciting development.

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