Sinopec, Fujian Province, ExxonMobil and Saudi Aramco sign ethylene JV in China

26-Feb-07

Two joint venture contracts that mark significant milestones in the development of China's first fully integrated Sino-foreign projects that involve refining, petrochemicals & fuels and chemicals marketing have been signed. As per current estimates, the project is expected to start up in early 2009. A contract for the Fujian Refining and Ethylene Joint Venture Project has been signed by Sinopec, Fujian Province, ExxonMobil and Saudi Aramco. Concurrently, a contract was signed between Sinopec, ExxonMobil and Saudi Aramco for the Fujian Fuels Marketing Joint Venture Project. The Fujian Fuels Marketing Joint Venture Project will manage and operate approximately 750 service stations and a network of terminals in Fujian Province. It will be 55% owned by Sinopec, 22.5% owned by ExxonMobil and 22.5% owned by Saudi Aramco. The Fujian Refining and Ethylene Joint Venture Project, located in Fujian Province, will expand the existing refinery from 80,000 bpd (4 million tpa) to 240,000 bpd (12 million tpa). The upgraded refinery will refine and process sour Arabian crude. In addition, the project will construct an 800,000 tpa ethylene steam cracker, an 800,000 tpa polyethylene unit, a 400,000 tpa polypropylene unit and a 700,000 tpa paraxylene unit. Support facilities including a 300,000 ton crude berth and power cogeneration will also be built. This joint venture company will be 50% owned by Fujian Petrochemical Company Limited, 25% owned by ExxonMobil China Petroleum and Petrochemical Company Limited and 25% owned by Saudi Aramco Sino Company Limited.