Saudi based major chemical company Sabic has signed joint venture contract with China’s Fujian Petrochemical Industrial Group Co. Ltd. (FJPEC) in order to build a world class mega petrochemical complex in China.
The project will include a total investment of USD 6.18 billion. The complex will be built at Gulei Industrial Park in East China’s Fujian province. The project will be consisting of a mixed feed steam cracker having an annual Ethylene production capacity of 1.5 million tonnes per year. Apart from the Ethylene capacity, there will be a series of downstream plants including a Mono Ethylene Glycol (MEG) unit, two Polypropylene (PP) units, one Polycarbonate (PC) unit, and various by product units.
The proposed capacity addition of 1.5 million tonnes per year of Ethylene will surely have an impact on the supply of Ethylene in Asia and other part of the world. With the present scenario of more than 20% Ethylene being produced in the Gulf Coast region, the proposed facility will release the supply pressure from the US and is expected to stabilize the prices in the medium term.
As per ChemAnalyst, “the proposed petrochemical complex comes at a time when the demand for petrochemicals is increasing in Asia and Europe. The capacity additions for Ethylene and Polypropylene will release the supply pressure in Asia and help in stabilizing the prices in the global markets as well.”