The Chinese government has approved a proposal to develop a multi-billion dollar refinery expansion and petrochemical complex in Fujian Province, China, said ExxonMobil Corp. officials. The venture will be a partnership between Fujian Petrochemical Co. Ltd. (FPCL) with a 50% interest; ExxonMobil, 25%; and Saudi Aramco, 25%.
The project will involve the construction of a new 600,000 tons/year ethylene steam cracker, a 450,000 tons/year polyethylene unit, and a 300,000 tons-per-year polypropylene unit, together with chemical derivatives manufacturing units and related distribution and marketing facilities. The petrochemical complex will be integrated with the existing FPCL refinery, which will expand its capacity to 240,000 b/d from the existing 80,000 b/d.
This approval, along with an earlier agreement for expansion of the Fujian refinery, permits further development of the overall integrated project, said ExxonMobil.
ExxonMobil is expected to submit the feasibility study of the project to the Chinese government for appraisal later this year.
A petroleum products marketing joint venture will market the products from the expanded refinery project. Partners in the marketing JV will include Sinopec Corp., ExxonMobil, and Saudi Aramco.
The formal approval of the project follows an announcement of the agreement between ExxonMobil and Sinopec to jointly study the development of manufacturing and fuels marketing joint ventures in Guangdong Province (OGJ Online, Sept. 13, 2000).