ExxonMobil Partners with Saudi Aramco and Sinopec in Fujian Petrochem Production and Marketing

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Researched by Industrial Info Resources (Sugar Land, Texas). Two joint venture project contracts in the Fujian Province of China between state-owned Sinopec (Beijing), ExxonMobil (NYSE:XOM) (Irving, Texas) and Saudi Aramco (Riyadh) mark the development of China’s first fully integrated projects covering refining, petrochemicals and fuels and chemical marketing. This Sino-international cooperation will be comprised of the Fujian Ethylene Joint Venture Project (FEP) and the Fujian Fuels Marketing Joint Venture Project (FFMP).

The FEP, located in Quanzhou, will expand the existing refinery from 80,000 barrels per day (bpd) to 240,000 bpd. The upgraded refinery will primarily refine and process sour Arabian crude. The project will also require the construction of an 800,000 tons per annum (tpa) ethylene steam cracker, an 800,000 tpa polyethylene unit, a 400,000 tpa polypropylene unit, and an aromatics complex producing 700,000 tpa of paraxylene. Support facilities included in the scope of the project are a 300,000-ton capacity crude oil tanker berth and a cogeneration power plant. The project is scheduled to start operations in 2009.

The joint venture company will be owned by Fujian Petrochemical Company, Limited (FPCL) (50%), ExxonMobil China Petroleum and Petrochemical Company (25%) and Saudi Aramco Sino Company (25%).

FFMP will manage and operate up to 750 service stations and a network of fuel terminals in Fujian Province and will be owned by Sinopec (55%), ExxonMobil (22.5%) and Saudi Aramco (22.5%).

The synergies and strengths provided by the partners in the two projects will create competitive, world-class enterprises targeted on China’s fast growing demand for petroleum products and petrochemicals.

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