Fujian Gulei Phase II Integrated Refining and Petrochemical Project launches with Saudi Aramco, Sinopec, and FPCL

Saudi Aramco, China Petroleum and Chemical Corporation (Sinopec), and Fujian Petrochemical Company Ltd. (FPCL) have broken ground on the Fujian Gulei Phase II Integrated Refining and Petrochemical Project, a $9.82 billion collaboration set to transform China’s energy sector. Located in Fujian Province’s Gulei coastal region, this project underscores the growing partnership between Saudi Arabia and China to strengthen energy ties and address increasing global demand for refined and chemical products.

The Fujian Gulei Phase II project will feature a refining capacity of 320,000 barrels per day, alongside a 1.5 million tons-per-year ethylene plant, a 2 million tons-per-year paraxylene unit, and a state-of-the-art 300,000-ton crude oil terminal. Once operational in 2030, the facility is expected to deliver 5 million tons of petrochemical feedstock annually, boosting China’s self-sufficiency in petrochemical production.

Ownership of the Fujian Gulei Phase II project is evenly shared among its collaborators, with Fujian Petrochemical Company Ltd. holding a 50% stake, while Saudi Aramco and Sinopec each retain 25%. This strategic partnership highlights Saudi Aramco’s commitment to expanding its downstream presence in China, which represents one of the world’s largest markets for crude oil and petrochemical products. By integrating refining and petrochemical operations, the project will ensure long-term supply stability and create a competitive edge for all stakeholders involved.

Industry experts view the Fujian Gulei Phase II project as a landmark in Saudi Arabia’s downstream strategy, particularly its focus on increasing crude oil exports to China for oil-to-chemical ventures. The project is aligned with Saudi Aramco’s goal of supplying up to 1 million barrels of crude oil per day to China, reinforcing its influence in Asia’s rapidly growing energy markets.

China’s government sees the Fujian Gulei Phase II Integrated Refining and Petrochemical Project as an opportunity to solidify its position in global energy markets. The facility will not only address the country’s reliance on imported petrochemical products but also meet the rising domestic demand for feedstocks used in the production of essential materials like plastics, textiles, and packaging. Its cutting-edge design ensures efficiency and sustainability, reflecting China’s broader goals of modernizing its industrial infrastructure.

The location in Gulei, Fujian Province, provides unparalleled logistical advantages, with access to major transportation networks that streamline both domestic distribution and international exports. Experts also highlight the importance of the 300,000-ton crude oil terminal, which is critical to ensuring a seamless and cost-effective supply of crude oil for processing.

The Fujian Gulei Phase II project builds upon the success of earlier agreements between Saudi Aramco, Sinopec, and Fujian Petrochemical Company Ltd., with negotiations dating back to 2022. The groundbreaking of this facility signals a shift towards closer collaboration between Saudi Arabia and China in achieving shared energy goals.

As the Fujian Gulei Phase II Integrated Refining and Petrochemical Project progresses, its significance becomes increasingly clear. By uniting the strengths of Saudi Aramco, Sinopec, and FPCL, the project sets a benchmark for large-scale energy collaborations. The partnership combines Saudi Aramco’s expertise in crude oil production, Sinopec’s refining capabilities, and Fujian Petrochemical Company Ltd.’s local market insights, creating a powerful synergy that is expected to redefine energy operations in the region.

Once completed, the Fujian Gulei Phase II project will play a critical role in fulfilling China’s energy and petrochemical demands while strengthening Saudi Arabia’s position as a global leader in crude oil supply. This venture exemplifies how international cooperation can drive innovation and efficiency in the energy sector, paving the way for future projects of similar scale and ambition.