A massive new refining and petrochemical complex, which costs $9.8 billion, is being built and operated by Saudi Aramco in China’s southeastern Fujian province, through a joint venture with Sinopec, Chinese business outlet Caixin reported.
The world’s second-largest economy is increasingly looking to secure the raw materials needed to power its industrial ambitions, and Saudi Arabia is second only to Russia as a supplier of crude oil for China. Aramco is also a major downstream investor in China, with the oil giant looking to secure long-term customers for its crude through deals in petrochemicals and refining. The kingdom sent a senior delegation to China last month, aiming to boost investment and trade in both countries.
The Fujian facility, expected to be completed by 2030, will include a refinery capable of processing 16 million tons of crude annually, and some 30 production units for chemicals. Aramco sees significant demand growth in China’s petrochemicals market, the company’s downstream president said in a statement.