Saudi Arabia’s Sabic gives its go-ahead for building US$6.4 billion ethylene plant in Fujian

The project, expected to cost around US$6.4 billion, will be developed in a joint venture with state-owned Fujian Fuhua Gulei Petrochemical

The complex is expected to be able to produce 1.8 million metric tons of ethylene per year

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An undated photograph of Sabic’s manufacturing facility in Saudi Arabia. Photo: SCMP

Published: 4:53pm, 22 Jan 2024

Saudi Basic Industries Corporation (Sabic) will go ahead with building a petrochemical complex in southeastern China’s Fujian province, the company said in an exchange filing on Sunday, shoring up Saudi ties with China, the world’s top oil importer.

The project, expected to cost around US$6.4 billion , will be developed in a joint venture with state-owned Fujian Fuhua Gulei Petrochemical.

First proposed in 2018, the joint venture marks the latest in a series of tie-ups between Saudi firms and Chinese refiners.

The complex is expected to be able to produce 1.8 million metric tons of ethylene per year, and is designed to expand Sabic’s manufacturing presence in Asia and diversify its feedstock supply chain, Sabic said.

Construction is expected to begin in the first quarter of 2024, with completion expected in the first quarter of 2027.

The announcement follows a number of similar investments by the kingdom’s oil giant Saudi Aramco in China’s downstream sector.