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Subsidaries of Aramco & SABIC sign agreement for Fujian project
15 Jul '08
5 min read
The two parties agreed that this task should be undertaken by SABIC through a polyolefins marketing agreement, on account of SABIC's local and foreign experience in petrochemical marketing.
He added: “This agreement will underscore the depth of the cooperation between Saudi Aramco and SABIC to maximize the benefit of their investment projects in the best interest of the Saudi economy. Saudi Aramco's share in the products to be marketed by SABIC will amount to 320,000 tons annually, representing percent of the total production of the joint venture in China. Implementation of the agreement is expected to start with the commercial startup of the project in the second quarter of 2009.”
This agreement is regarded as one of the significant pillars in the progress of the strategic partnership between SABIC and Saudi Aramco, and the agreement is expected to boost and support the strong leading position of SABIC in the field of production and marketing of polyolefins, worldwide.
Through its representative, Saudi Aramco Sino Company Ltd, Saudi Aramco holds a 25 percent interest in the refining and petrochemical joint venture along with Fujian Petrochemicals Company of China, a subsidiary of Sinopec Corporation and the Fujian Government, which owns a 50 percent stake, while ExxonMobil owns 25 percent through a subsidiary.
The project's products will include such polyolefins as Liner low density polyethylene (LLDPE), at a production capability of 400,000 tons annually, high density polyethylene (HDPE), at a production capacity of 400,000 tons annually. The project will also produce polypropylene (PP), at a production capacity of 470,000 tons annually.
Headquartered in Riyadh, SABIC was founded in 1976 when the Saudi Arabian Government decided to use the hydrocarbon gases associated with its oil production as the principal feedstock for production of chemicals, polymers and fertilizers.
The Saudi Arabian Government owns 70 percent of SABIC shares with the remaining 30 percent held by private investors in Saudi Arabia and other Gulf Cooperation Council countries.
Saudi Basic Industries Corporation (SABIC) is the world's 5th largest petrochemicals company. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
In Saudi Arabia, the company has 20 world-scale complexes and 19 of them are located in the industrial cities of Al-Jubail and Yanbu. Some of these complexes are operated with multinational joint venture partners such as ExxonMobil, Shell and Mitsubishi Chemicals.
Elsewhere, SABIC manufactures on a global scale in more than 45 countries in the Americas, Europe and Asia Pacific. SABIC's overall production has increased from 27 million metric tons in 2001 to 55 million metric tons in 2007.
He added: “This agreement will underscore the depth of the cooperation between Saudi Aramco and SABIC to maximize the benefit of their investment projects in the best interest of the Saudi economy. Saudi Aramco's share in the products to be marketed by SABIC will amount to 320,000 tons annually, representing percent of the total production of the joint venture in China. Implementation of the agreement is expected to start with the commercial startup of the project in the second quarter of 2009.”
This agreement is regarded as one of the significant pillars in the progress of the strategic partnership between SABIC and Saudi Aramco, and the agreement is expected to boost and support the strong leading position of SABIC in the field of production and marketing of polyolefins, worldwide.
Through its representative, Saudi Aramco Sino Company Ltd, Saudi Aramco holds a 25 percent interest in the refining and petrochemical joint venture along with Fujian Petrochemicals Company of China, a subsidiary of Sinopec Corporation and the Fujian Government, which owns a 50 percent stake, while ExxonMobil owns 25 percent through a subsidiary.
The project's products will include such polyolefins as Liner low density polyethylene (LLDPE), at a production capability of 400,000 tons annually, high density polyethylene (HDPE), at a production capacity of 400,000 tons annually. The project will also produce polypropylene (PP), at a production capacity of 470,000 tons annually.
Headquartered in Riyadh, SABIC was founded in 1976 when the Saudi Arabian Government decided to use the hydrocarbon gases associated with its oil production as the principal feedstock for production of chemicals, polymers and fertilizers.
The Saudi Arabian Government owns 70 percent of SABIC shares with the remaining 30 percent held by private investors in Saudi Arabia and other Gulf Cooperation Council countries.
Saudi Basic Industries Corporation (SABIC) is the world's 5th largest petrochemicals company. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
In Saudi Arabia, the company has 20 world-scale complexes and 19 of them are located in the industrial cities of Al-Jubail and Yanbu. Some of these complexes are operated with multinational joint venture partners such as ExxonMobil, Shell and Mitsubishi Chemicals.
Elsewhere, SABIC manufactures on a global scale in more than 45 countries in the Americas, Europe and Asia Pacific. SABIC's overall production has increased from 27 million metric tons in 2001 to 55 million metric tons in 2007.
Saudi Aramco
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