Sinopec Corp and Saudi Aramco have broken ground on a major refinery and petrochemical complex in southeast China’s Fujian province, underscoring the rapid pace of petrochemical expansion in the country. The project, located in Gulei Industrial Park, Zhangzhou City, represents a 71.1 billion yuan ($9.82 billion) investment and further strengthens China–Saudi energy ties.
Expanding Refining and Petrochemical Capacity
The venture will feature a 16 million metric ton-per-year (tpy) refinery—equivalent to 320,000 barrels per day, a 1.5 million tpy ethylene plant, a 2 million tpy paraxylene unit, and a 300,000-ton crude oil terminal, Sinopec confirmed in a statement. Once operational in 2030, the complex will be capable of supplying 5 million tons of petrochemical feedstock annually, significantly boosting China’s self-sufficiency in chemicals.
Strengthening Aramco’s Downstream Strategy
For Saudi Aramco, the project reflects a continued push to expand its downstream portfolio beyond the Kingdom. According to Mohammed Y. Al Qahtani, Aramco’s downstream president, the company aims to supply one million barrels per day of crude oil to China for its growing oil-to-chemicals sector. This is Aramco’s second major refining and petrochemical joint venture with a Chinese state-owned oil company, underscoring its long-term commitment to the Chinese market.
Joint Venture Structure
The complex will be jointly owned by:
*Fujian Petrochemical (a Sinopec–Fujian government joint venture) with 50% stake
*Saudi Aramco with 25% stake
*Sinopec with the remaining 25%
The agreement follows a preliminary deal signed two years ago, which set the stage for this large-scale collaboration.
Part of China’s Petrochemical Expansion Wave
The Fujian project, also referred to as Gulei Phase Two, builds on Sinopec’s earlier ethylene complex launched in 2021 with a Taiwanese partner. Sinopec recently added a 1.2 million tpy ethylene plant in northern China and is constructing another facility of similar scale in Zhenhai, eastern China. Meanwhile, in the same industrial park, Saudi Basic Industries Corp (SABIC) is developing a $6.4 billion petrochemical complex in partnership with a local government-backed entity.
Broader Industry Push
As reported by reuters.com, the projects come alongside a wave of private-sector investments since 2018, led by Rongsheng Holdings, Hengli Group, and Jiangsu Shenghong Group, as China accelerates efforts to achieve petrochemical self-sufficiency.
