Exxon, Aramco sign refinery deal with Sinopec
26 February 2007 02:01 [Source: ICIS news]
SINGAPORE (ICIS news)--ExxonMobil has signed the joint venture contract for the Fujian refining and cracker project currently expected to start up in early 2009, the US major said on Sunday.
The joint venture company will be owned by Fujian Petrochemical (50%), ExxonMobil China Petroleum and Petrochemical (25%) and Saudi Aramco Sino Co (25%).
A separate contract to jointly market fuels in Fujian province was also signed, it said in a statement.
The venture will manage and operate approximately 750 service stations and a network of terminals in Fujian province and will be owned by Sinopec (55%), ExxonMobil (22.5%) and Saudi Aramco (22.5%).
The signing of the two joint venture contracts marks significant milestones in the development of China’s first fully integrated Sino-foreign projects that involve refining, petrochemicals and fuels and chemicals marketing, ExxonMobil said.
The partners are to expand an existing refinery in Quanzhou, Fujian province, to 12m tonnes/year from 4m tonnes/year. The upgraded refinery will primarily refine and process sour Arabian crude.
The project also includes an 800,000 tonne/year naphtha cracker, an 800,000 tonne/year polyethylene (PE) unit, a 400,000 tonne/year polypropylene (PP) unit and an aromatics complex to produce 700,000 tonne/year of paraxylene (PX), ExxonMobil said.
Support facilities including a 300,000-tonne crude berth and power cogeneration will also be built, it added.
Synergies among the two businesses, coupled with the strengths of each partner and a reliable supply of crude oil from Saudi Aramco, will significantly enhance the competitiveness of this project, and help ensure its world-class performance, ExxonMobil said.
Prema Viswanathan contributed to this article
By: Florence Tan
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