China partners with ExxonMobil and Saudi Aramco for worldscale PO plant

Described as “significant milestones” in the development of China’s refining, petrochemical, and fuels capabilities, global oil and gas leaders ExxonMobil and Saudi Aramco signed two accords with China’s state-owned oil, gas, and petrochemical producer Sinopec and the Fujian province to create the first wholly integrated Sino-foreign full-spectrum refining and petrochemical operations with 1.2 million tons/yr polyolefin capacity.

Fujian Refining and Ethylene Joint-Venture Project will be located in Quanzhou and will triple the existing refinery’s capacity from 80,000 barrels/day to 240,000, primarily processing sour Arabian crude via Saudi Aramco. In addition, the project will feature an 800,000-tons/yr ethylene steam cracker, an 800,000-tons/yr polyethylene unit, and 400,000 tons/yr of polypropylene capability. Plans are in place for an aromatics complex, as well, with 700,000-tons/yr paraxylene capacity planned.

The stakeholders’ shares break down as such: 50% to Fujian Petrochemical Co. Ltd.; 25% to ExxonMobil China Petroleum; 25% to Petrochemical Co. Ltd.; and 25% to Saudi Aramco Sino Co. Ltd. Startup is set for early 2009.—[email protected]