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SABIC and Fujian Energy Commence Construction on Collaborative Petrochemicals Venture
SABIC and Fujian Energy Commence Construction on Collaborative Petrochemicals Venture

SABIC and Fujian Energy Commence Construction on Collaborative Petrochemicals Venture

  • 22-Feb-2024 12:24 PM
  • Journalist: Timothy Greene

SABIC, headquartered in Riyadh, Saudi Arabia, and Fujian Energy and Petrochemical Group Co. Ltd., based in Fujian Province, China, recently conducted a momentous groundbreaking ceremony to signify the initiation of the full execution and construction phase of the SABIC Fujian Petrochemical Complex, also known as the Sino-Saudi Gulei Ethylene Complex Project. This collaborative venture marks a significant milestone in the partnership between SABIC and Fujian Energy Petrochemical, with the ceremony held at the project site in Fujian Province, China. The CEO of SABIC, Abdulrahman Al-Fageeh, attended the event, expressing his enthusiasm for the commencement of this joint endeavor.

Abdulrahman Al-Fageeh, the CEO of SABIC, emphasized the SABIC Fujian Petrochemical Complex as a pivotal project in the company's development in China. It stands as a testament to SABIC's overarching ambition to position itself as the world's preferred leader in the chemicals industry. Al-Fageeh articulated the company's unwavering commitment to delivering effective solutions to customers, maximizing shareholder value, and actively supporting industry upgrading initiatives. Recognizing China as a key player in the global petrochemical market, he highlighted the country's strategic significance for SABIC. Al-Fageeh expressed SABIC's commitment to continued investment in China and collaborative efforts with local partners, contributing to the nation's high-quality sustainable development.

The SABIC Fujian Petrochemical Complex is strategically located in the Gulei Petrochemical Industrial Park, a prominent hub among the seven national petrochemical hubs in China. The project will be executed by SABIC FUJIAN Petrochemicals Co. Ltd., a joint venture established in March 2022, with SABIC Industrial Investment Company (wholly owned by SABIC) holding a 51% stake and Fujian Fuhua Gulei Petrochemical Co., Ltd. (owned by Fujian Energy and Petrochemical Group) holding the remaining 49%. SABIC officially announced its final investment decision for the project in January 2024. With an estimated total investment of USD 6.4 billion, this project represents a substantial cross-regional collaboration, fostering mutual benefits for SABIC and Fujian Energy Petrochemical.

The projected timeline for the SABIC Fujian Petrochemical Complex includes the initiation of commissioning and start-up preparations in the second half of 2026. Anticipating an annual ethylene capacity of up to 1.8 million tons, the complex aims to address the escalating demand for high-end chemical products in the market and among customers. Additionally, the project is poised to stimulate downstream investment opportunities, contributing to the overall economic development of the region.

This groundbreaking collaboration underscores the commitment of both SABIC and Fujian Energy Petrochemical to harness their respective strengths and capabilities in creating a venture that not only aligns with market demands but also promotes sustainable development practices. The joint venture's focus on high-end chemical products and downstream opportunities positions it as a key player in the dynamic landscape of the petrochemical industry. As the construction phase unfolds, the SABIC Fujian Petrochemical Complex is set to play a pivotal role in shaping the future of cross-regional cooperation and contributing to the ongoing evolution of the global petrochemical sector.

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