Chinese state-owned energy giant China Petroleum & Chemical Corp. (Sinopec) and Saudi Arabia’s national oil company, Saudi Aramco, have launched a joint venture to build and operate a RMB 71.1 billion ($9.8 billion) refining and petrochemical complex in China’s southeastern Fujian province, a major step in strengthening energy cooperation between the two countries, reports Caixin.
The new company, Fujian Sinopec Aramco Refining & Petrochemical Co. Ltd., was formally inaugurated on Sunday. The joint venture will spearhead the second phase of the Gulei refining and petrochemical integration project. The development includes a refinery capable of processing 16 million tons of crude annually, along with over 30 production units for ethylene, aromatics, and other chemical derivatives.
According to corporate registration filings, the company was officially registered on Sept. 4 with capital totaling RMB 28.8 billion. A Sinopec subsidiary, Sinopec Fujian Refining and Chemical Industry Co. Ltd., holds a 50% stake. Sinopec and a Singapore-based Aramco unit each own 25%.