Sabic is moving forward on USD 6.4 bn petrochem complex in China: Petrochemicals giant Saudi Basic Industries Corp (Sabic) has reached a final investment decision to develop a world-scale USD 6.4 bn petrochemical complex in China’s Fujian, it said in a disclosure to Tadawul yesterday. The announcement comes a few years after the two parties signed an MoU in 2018 for the project.

What we know: The complex will be developed through a joint venture between Sabic subsidiary Sabic Industrial Investment Company, which will hold 51% of the project, and Fujian Fuhua Gulei Petrochemical Company holding the remaining balance. The project will be financed through debt in addition to the company’s cashflows, it said.

Ironing out the details: The project will be home to a mixed feed steam cracker with an annual ethylene maximum capacity of up to 1.8 mn tons and downstream facilities including ethylene glycols, polyethylene, polypropylene, polycarbonate, and others. Nine of the technologies set to be utilized in the complex will be supplied from Sabic, according to the disclosure.

All part of Sabic feedstock diversification plan: The project comes as part of a plan Sabic is implementing to diversify its feedstock sources and expand its manufacturing presence in Asia, it said.

Expect construction to begin this year: The construction of the project is slated to begin during the first half of this year, with preparations for commissioning and start-up beginning from the second of 2026 for six months.

Aramco is also involved: Aramco Trading — a subsidiary of Aramco — is also a related party, the disclosure said, without providing further details on the company’s role. Aramco owns 70% of Sabic through its Aramco Chemicals subsidiary.

This has been in the works for quite a while: Sabic signed a MoU with Fujian province in 2018 to set out a framework for the development of the project.

Tags: