Saudi’s Sabic advances $6.4 billion petrochemical venture in China
The final investment decision (FID) signed on 21 January 2024 allows Sabic 51% of the stake in the project, while China’s state-owned Fujian Fuhua Gulei Petrochemical holds the remaining 49%.
Saudi Basic Industries Corp (SABIC) is set to forge stronger ties with China, the world's leading oil importer, by moving forward with the construction of a $6.4 billion petrochemical complex in Fujian province.
The final investment decision (FID) signed on 21 January 2024 allows Sabic 51% of the stake in the project, while China’s state-owned Fujian Fuhua Gulei Petrochemical holds the remaining 49%.
The complex consists of a mixed feed cracker with an annual output of 1.8 million tons of ethylene, which aims to bolster SABIC's manufacturing footprint in Asia and diversify its feedstock supply chain. Downstream units include EG, PE, and PP plants, which will be utilising technologies from SABIC.
Construction is slated to commence in 1H 2024, with completion expected by 2H 2026. Commercial production is targeted for the 1H 2027.
This move follows Saudi Aramco's strategic investments in China's downstream sector, including talks with Rongsheng Petrochemical for a 50% stake swap in refineries. Aramco's earlier acquisition of a 10% stake in Rongsheng, valued at $3.4 billion, solidified a 20-year crude oil supply deal.
Additionally, Aramco's plans to become a strategic investor in Jiangsu Shenghong Petrochemical and discussions to acquire a 10% stake in Shandong Yulong Petrochemical Co demonstrate the kingdom's commitment to expanding its presence in China's thriving energy sector.