SABIC, China's FJPEC in JV pact for $6-bn petrochemical complex

07 Sep '21

1 min read

Pic: Shutterstock

The Saudi Basic Industries Corporation (SABIC) and China's Fujian Petrochemical Industrial Group Company (FJPEC) recently signed a joint venture (JV) agreement to build a petrochemical complex in east China’s Fujian province. The $6-billion steam cracker and ethylene downstream project would be built at the Gulei Industrial Park.

The project will include a mixed-feed steam cracker, numerous downstream facilities and several by-product units, a statement from SABIC said.

The annual ethylene production capacity would be 1.5 million tonnes. The two companies will set up a 51:49 JV after receiving approval from relevant Chinese government authorities.

The scope of work includes a series of downstream production units, including an ethylene glycol (MEG) unit, two sets of polyethylene (PE) units, two polypropylene (PP) units, and other production units.

Fujian Petrochemical Company (FPCL), a 50:50 JV between FJPEC and Sinopec, owns a 50 per cent stake in Fujian Refining & Petrochemical Company Ltd (FREP), a joint venture with ExxonMobil China (25 per cent) and Saudi Aramco Sino Company (25 per cet), according to FREP's website.

SABIC is the chemicals arm of Aramco, following Aramco’s acquisition of a 70 per cent stake in the company in June 2020.

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