ExxonMobil Launches First Foreign Refining Joint Venture In China
Sinopec, the Fujian Provincial government, ExxonMobil and Saudi Aramco have together signed a contract for the Fujian Refining and Ethylene Joint Venture Project, marking a significant milestone in the development of China’s first fully integrated Sino-foreign project involving refining, fuels and chemicals marketing.
At the same time, Sinopec, ExxonMobil and Saudi Aramco signed a contract for the Fujian Fuels Marketing Joint Venture Project.
The Fujian Refining and Ethylene Joint Venture Project, located in Quanzhou, Fujian Province, will expand the existing refinery from 80,000 barrels-per-day ¡ª 4 million tons-per-year ¡ª to 240,000 barrels-per-day, or about 12 million tons-per-year. The upgraded refinery will primarily refine and process sour Arabian crude.
In addition, the project will construct 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 to produce 700,000 tons-per-year of paraxylene. Support facilities including a 300,000 ton crude berth and power cogeneration will also be built.
This joint venture company will be owned by Fujian Petrochemical Company Limited (50%), ExxonMobil China Petroleum and Petrochemical Company Limited (25%) and Saudi Aramco Sino Company Limited (25%). Currently, the project is expected to start up in early 2009. 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 owned by Sinopec (55%), ExxonMobil (22.5%) and Saudi Aramco (22.5%).
Together, the Fujian Refining and Ethylene Joint Venture Project and the Fujian Fuels Marketing Joint Venture Project aim to meet China’s rapidly growing demand for petroleum products and petrochemicals.
Fujian Petrochemical Company Limited is owned 50% by China Petroleum and Chemical Corporation (Sinopec) and 50% by the Fujian Government.