Saudi Basic Industries Corp or SABIC shall open a petrochemical unit in Fujian, China for about USD6.4Bn. The complex shall be developed in association with the state-owned Fujian Fuhua Gulei Petrochemical.
The venture is the latest in a tie-up between Chinese and Saudi companies and was first proposed in the year 2018 for China is a major importer of oil.
According to SABIC, the complex shall manufacture 1.8mn metric tons of ethylene each year and shall be made to expand SABIC’s manufacturing presence in Asia and expand its feedstock supply chain.
The unit’s construction is likely to start in Q12024 with its completion likely to be finished in Q12027. The above development is one in a series of investments by Saudi Aramco in China’s downstream sector.
In early-January, China-based Rongsheng Petrochemical and Aramco were in discussions to acquire a 50% stake in Saudi Arabia and China.
Aramco earlier announced to have agreed to purchase a 10% stake in Rongsheng for USD3.4bn in July. The above investment is attached to a 20-year crude oil supply agreement with Zhejiang Petrochemical Corp.
Aramco in September 2023 announced plans to become a strategic investor in Ji in China-based Jiangsu Shenghong Petrochemical that operates 320,000 bpd refinery and petrochemical complex in Jiangsu.
Aramco is also in discussions to purchase Shandong Yulong’s 10% stake which is developing a refinery complex which can process 400,000 barrels of crude each day in Shandong, China.
