Saudi Basic Industries Corporation (SABIC) announced its final investment decision (FID) to develop a petrochemical complex in Fujian, China, at an investment of $6.4 billion.

The project will be developed by a joint venture between SABIC Industrial Investment Company (SIIC), a wholly-owned subsidiary, and Fujian Fuhua Gulei Petrochemical Company, SABIC said in a statement to the Saudi stock exchange on Sunday.

SIIC will hold 51 percent of the project, while Fujian Fuhua Gulei will own the remaining 49 percent.

The complex will consist of a mixed-feed steam cracker with an expected annual ethylene maximum capacity of up to 1.8 million tonnes.

The project will feature world-class downstream facilities, including ethylene glycols, polyethylene, polypropylene, polycarbonate, and several other units using the latest technologies. At least nine SABIC-developed technologies will be used in production.

SABIC expects the project’s construction to begin in the first half of 2024, while the preparation for commissioning and start-up will commence in the second half of 2026 and last for six months.

The petrochemicals major will finance the project through debt and its cash flows, the statement said.

In September 2018, SABIC signed a memorandum of understanding with the Fujian Provincial Government, China, to develop a petrochemicals complex in Fujian.

(Writing by D Madhura; Editing by Anoop Menon)


Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa.