ExxonMobil, Sinopec, a Chinese petroleum company, and Saudi Aramco, the Saudi government oil company, announced Friday the Chinese government's approval of two joint ventures in Fujian Province – Fujian Refining & Petrochemical Co. Ltd. and Sinopec SenMei (Fujian) Petroleum Co. Ltd.
The two joint ventures, with a total investment of approximately $5 billion, are China's first fully integrated refining, petrochemicals and fuels marketing operation with foreign participation.
The Fujian Refining and Ethylene Joint Venture Project, located in Quanzhou, Fujian Province, will expand the existing refinery from 80,000 barrels daily (4 million tons annually) to 240,000 barrels daily (12 million annually).
The project will also build an 800,000 tons-per-year ethylene steam cracker, an 800,000 tons-per-year polyethylene unit, a 400,000 tons-per-year polypropylene unit and an aromatics complex that will produce 700,000 tons-per-year of paraxylene. Support facilities including a 300,000 ton crude berth and power cogeneration will also be constructed.
The joint venture company, Fujian Refining & Petrochemical Co. Ltd., will be owned by Fujian Petrochemical Co. Ltd. (FPCL) (50 percent), ExxonMobil China Petroleum and Petrochemical Co. Ltd. (25 percent) and Saudi Aramco Sino Co. Ltd. (25 percent).
The project is expected to begin operations in early 2009.
The Fujian Fuels Marketing Joint Venture, Sinopec SenMei (Fujian) Petroleum Co. Ltd., will manage and operate about 750 service stations and a network of terminals in Fujian Province. It will be owned by Sinopec (55 percent), ExxonMobil China Petroleum and Petrochemical (22.5 percent) and Saudi Aramco Sino (22.5 percent).
Both joint venture projects will help to meet China's rapidly growing demand for petroleum products and petrochemicals, and enhance the development of China's petrochemical industry.
Fujian Petrochemical is owned 50% by China Petroleum and Chemical Corporation (Sinopec) and 50% by the Fujian Government. ExxonMobil China Petroleum and Petrochemical (ExxonMobil) is a wholly owned affiliate of Exxon Mobil Corp. and Saudi Aramco Sino (Saudi Aramco) is a wholly owned affiliate of Saudi Aramco.