First Sino-Foreign Joint Refining and Petrochemical Venture Begins Full Operation; Triples Capacity of Existing Refinery
China’s first integrated foreign joint venture refining and petrochemical facility has begun full commercial operation. Partners in the Fujian Integrated Refining and Ethylene Joint Venture Project are Sinopec (China Petroleum and Chemical Corp.), ExxonMobil, Saudi Aramco and the government of Fujian Province.
More than $4.5 billion was invested in the complex, which tripled the capacity of the existing refinery to 240,000 barrels per day to produce transportation fuels and other refined products. The upgraded refinery primarily refines and processes sour Arabian crude.
In addition, the project added a new petrochemical complex that includes 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 a 700,000 tons-per-year paraxylene unit.
The complex also features a 250 MW cogeneration facility, which will meet the majority of the site’s power demands.
Separately, Sinopec and ExxonMobil entered into a Heads of Agreement for the long-term supply of 2 million tonnes per annum (MTA) of Liquefied Natural Gas (LNG) from the Esso Highlands Project to Sinopec. ExxonMobil and Sinopec Corp. are working together to finalize a binding sale and purchase agreement this year.