Sinopec and Saudi Aramco Launch $10 Billion Joint Venture, Accelerating Gulei Refining and Petrochemical Phase II Project

China Petroleum & Chemical Corporation (Sinopec), Fujian Refining & Petrochemical Company, and Saudi Aramco have officially announced the establishment of a joint venture — Fujian Sino-Aramco Refining & Petrochemical Company. The new company will take full responsibility for the construction and operation of Phase II of the Gulei refining and petrochemical integration project in Fujian Province, marking a new stage in China-Saudi Arabia energy cooperation.

The joint venture has a registered capital of RMB 28.8 billion, with Fujian Refining holding a 50% stake, while Sinopec and Aramco Asia, a subsidiary of Saudi Aramco, each hold 25%. This equity structure combines Sinopec’s domestic industrial chain strengths and Fujian Refining’s regional resources with Aramco’s supply security and global market access, creating a powerful synergy of capital, technology, and market advantages.

The Gulei Phase II project had already commenced in November 2024. Its construction scope includes a refinery capable of processing 16 million tons of crude oil annually, a 1.5 million-ton-per-year ethylene unit, and a 2 million-ton-per-year aromatics unit, along with more than 30 downstream processing units, utility systems, and supporting terminal facilities. With the joint venture now in place, the project enters a new stage of collaborative development, with completion and commissioning targeted for the end of 2030.

Upon completion, the Gulei petrochemical base is expected to evolve into a world-class petrochemical industrial cluster, with an estimated annual output value of RMB 300 billion. The project will not only strengthen the supply of advanced chemical products in Fujian and across China, but also play a strategic role in securing energy supply, upgrading the industry, and driving regional economic growth.

At the unveiling ceremony in Xiamen, Sinopec Chairman Hou Qijun stated that Sinopec will work closely with its partners to accelerate project construction and build Phase II into a flagship initiative under the Belt and Road framework. A senior executive from Aramco’s downstream business highlighted that the project represents a major step in expanding Aramco’s global downstream portfolio, underscoring its long-term commitment to the Chinese market. Fujian provincial leaders also noted that the establishment of the joint venture will further elevate the province’s position within the global petrochemical landscape.

The launch of this partnership not only reflects the deep mutual trust between China and Saudi Arabia in energy and industrial cooperation but also stands as an important milestone for regional economic development and international energy collaboration.