China Expansions: Sinopec starts up ethylene complex in Tianjin; Aramco/Sinopec/Fujian Petrochemical break ground on petchem project in Fujian

China Petroleum and Chemical Corporation or Sinopec says it has successfully started up a new ethylene complex in northern China, part of China's recent additions of large-scale petrochemical plants. Sinopec began operating a 1.2 million tonnes/year ethylene plant that is designed to provide 4 million tonnes/year of high-end chemical products and fine chemical feedstocks, the state firm said in a statement.

The new project, built in the Nangang industrial zone of port city Tianjin, near Beijing, brings the total ethylene capacity at Sinopec Tianjin subsidiary to 2.5 million tonnes/year, Sinopec said.

There are 13 downstream projects including LDPE and polyolefin elastomers (POE), a new chemical with the characteristics of both rubber and plastics that widely used in vehicles, medical appliances and toys.

The new ethylene complex, partly powered by solar and designed as an energy and water efficient project, is integrated with Sinopec Tianjin's 320,000 barrels/day refinery, Sinopec added.

Meanwhile, in related news, Aramco, one of the world’s leading integrated energy and chemicals companies, together with Sinopec, and Fujian Petrochemical Company Limited (FPCL) have broken ground on a new integrated refining and petrochemical complex in Fujian Province, China. The complex at Gulei is scheduled to start up in 2030.

The facility is planned to have a 16 million tonnes/year oil refining unit (320,000 barrels per day), a 1.5 million tonnes/year ethylene unit, a 2 million tonnes paraxylene and downstream derivatives capacity, and a 300,000 tonnes crude oil terminal.

FPCL, a 50:50 joint venture between Sinopec and Fujian Petrochemical Industrial Group Company, will own a 50% stake in the complex, with Aramco and Sinopec each taking a 25% stake.

Mohammed Y. Al Qahtani, Aramco Downstream President, said: “Building on our strong relationships with both Sinopec and Fujian Petrochemical, today’s groundbreaking further expands Aramco’s growing downstream investment portfolio in China. We will supply in excess of one million barrels per day of our crude oil to these high chemical conversion assets in China, reinforcing Aramco’s role as a reliable and long-term partner in China’s development. This also advances our liquids-to-chemicals strategy, through which we intend to direct more of our crude towards helping meet rising global petrochemicals demand.”

Ma Yongsheng, Sinopec Chairman, said: “Both Sinopec and Aramco are committed to promoting the high-quality development of the petroleum and petrochemical industry. Aramco's participation supplies long-term reliable and competitive feedstock for the project and further boosts the healthy development of Gulei Petrochemical Base. Successful cooperation in this project marks a new milestone in the China-Saudi all-weather strategic partnership, with a focus on greater domestic circulation and in line with the dual circulation strategy.”

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