Sinopec and Saudi AAS jointly build the second phase of the Gulei Petrochemical Company with a total investment of 71.1 billion

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On April 28, China Petroleum & Chemical Corporation ( 00386.HK ) announced that on April 28, 2025, the company, Fujian Refining and Chemical and AAS signed a "Joint Venture Agreement." According to the "Joint Venture Agreement", the company and its subsidiary Fujian Refining and Chemical will jointly invest in the establishment of a joint venture with AAS (an independent third party, directly and wholly owned by Saudi Aramco). The registered capital of the joint venture company is RMB 28,800,906,667. The company and Fujian Refining and Chemical will contribute RMB 7,200,226,667 and RMB 14,400,453,334 in cash respectively, accounting for 25% and 50% of the registered capital of the joint venture company. ； AAS will contribute RMB 7,200,226,667 in cash, accounting for 25% of the joint venture's registered capital. By accepting AAS as a partner, this transaction will help the Gulei Phase II project to ensure the supply of crude oil resources, optimize financing, integrate the technical advantages of both parties, improve the level of regional resource coordination and optimization, and help improve the company's integrated refining and chemical operations and regional competitiveness. On November 18, 2024, the second phase of the Fujian Gulei refining and chemical integration project started. The project is jointly constructed by Fujian Province, Sinopec, and Saudi Aramco. It will build more than 30 sets of units with an annual capacity of 16 million tons of oil refining, 1.5 million tons of ethylene, and 2 million tons of aromatics. It mainly uses Sinopec's independent research and development technology. It will effectively guarantee the supply of basic raw materials such as refining, ethylene, and aromatics at the Gulei Petrochemical Base, promote the coordinated development of the upstream and downstream of the industrial chain, and enhance the safe, green, and efficient development level and overall competitiveness of Fujian's petrochemical industry. Project IntroductionProject Name: Fujian Gulei Refining and Chemical Integration Project Phase II Project Application Unit: Construction unit of Fujian Refining and Chemical Co., Ltd.: Construction site of Fujian Refining and Chemical Co., Ltd.: Zhangzhou Gulei Petrochemical Base Construction Cycle: Total investment from 2024 to 2028: Source of funds of 71.1 billion yuan: The project capital accounts for 30% of the total investment and is raised by the enterprise itself. ； The remainder is bank loans. 　　Construction scale and main content: The project plans to build more than 30 refining and chemical units including 16 million tons/year oil refining, 1.5 million tons/year ethylene, and 2 million tons/year aromatics, as well as supporting public engineering systems, off-site pipeline corridors, terminal storage areas, and South 7# berth. 　　Refining part: Newly built 16 million tons/year atmospheric and vacuum pressure, 3.8 million tons/year light hydrocarbon recovery, 1.5 million tons/year jet fuel hydrogenation, 2×2.6 million tons/year heavy oil hydrogenation (including 1.2 million tons/year solvent deasphalting unit), 4 million tons/year diesel Hydrocracking, 2×3.2 million tons/year wax oil hydrocracking, 2×3 million tons/year reforming, 2 million tons/year aromatics combination, 600,000 tons/year carbon dioxide recovery, 3×20+70,000 tons/year sulfur recovery, desulfurization and supporting equipment. 　　Chemical part: Newly built 1.5 million tons/year steam cracking, 600,000 tons/year pyrolysis gasoline hydrogenation, 350,000 tons/year aromatics extraction, 210,000 tons/year butadiene, 300,000 tons/year vinyl acetate, 200/60,000 tons/year MTBE/butene-1 unit, 300,000 tons/year tubular EVA, 300,000 tons/year line Low-density polyethylene (LLDPE), 300,000 tons/year full-density polyethylene (FDPE), 500,000 tons/year high-density polyethylene (HDPE), 400,000 tons/year acrylonitrile, 350,000 tons/year polypropylene, 300,000 tons/year carbon five separation, 16/190,000 tons/year acrylic acid and esters, etc. 　　Public works section: The new public engineering system includes air separation, air pressure and water treatment stations, purified water plants, circulating water plants, power supply systems, fire protection systems, sewage treatment plants, etc. ； Supporting facilities include central control room, comprehensive office building, central laboratory, sewage treatment plant, torch system, packaging plant and warehouse, etc. ； The supporting systems outside the plant include a 150,000-ton general berth (South 7# pier), storage area, product tank area, off-site pipelines, coal transportation trestle and other projects.