MOSCOW (MRC) -- Riyadh-based global chemical company Sabic has inked a joint venture contract with China's Fujian Petrochemical Industrial Group Co., Ltd (FJPEC) to build a world-class mega petrochemical complex in China, said Hydrocarbonprocessing.
With a total investment of 40 billion yuan (about USD6.18 bn), the complex will be built at Gulei Industrial Park in Zhangzhou city, east China's Fujian Province. It will consist of a mixed feed steam cracker that holds an annual ethylene capacity of 1.5 m tonnes, as well as a series of downstream facilities including a mono ethylene glycol (MEG) unit, two polyethylene (PE) units, two polypropylene (PP) units, one polycarbonate (PC) unit and several by-product units.
Sabic announced in September 2018 that it had signed a Memorandum of Understanding (MoU) with the Fujian provincial government to build a world-class petrochemical complex in China's southeastern province.
Fuhaichuang Petrochemical, formerly Dragon Aromatics (Zhangzhou), relaunched its 1.6Mtpa paraxylene plant and 4.5Mtpa purified terephthalic acid (PTA) plant in Guley in December 2018 following a stopover that lasted more than three and a half years.
Dragon Aromatics was restructured in October 2017 into Fujian Fuhaichuang Petrochemical, which is 90% owned by China's Fuhua Gulei Petrochemical and 10% by Taiwan's Xianglu Group, the previous owner of Dragon Aromatics.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.
Fuhua Gulei is a joint venture between Fujian Petrochemical Group, funded by the Fujian government, and the local Jiulongjiang Group in Zhangzhou, a metropolitan area in Fujian province.
Sabic is a diversified company manufacturing chemicals, industrial polymers, fertilizers and metals. It is the largest state-owned company in Saudi Arabia. Sabic is currently the world's second largest producer of ethylene glycol, the third largest polyethylene producer, and the fourth largest polypropylene producer.
MRC