The Clap
Saudi Basic Industries Corporation (SABIC) intends to develop a petrochemical complex in Fujian province, China, known as the Saudi-Chinese Gulei Ethylene Complex project.
This represents an “extension of ongoing collaboration” between Saudi and Chinese companies.
What
SABIC clarified that the expected cost of the complex is approximately USD 6.4 billion, with the anticipated launch during H1-24. The project’s trial operation is expected to commence in H2-26, extending over a period of six months.
So What
The project, the “largest foreign investment” in Fujian, aims to diversify the feedstock sources necessary for SABIC’s operations. It also seeks to enhance its presence in the petrochemical industry in the Asian continent, covering a wide range of products and applications.
Some Context
SABIC Fujian Petrochemicals is a joint project between SABIC Industrial Investments (51%) and Fujian Petrochemical Company (49%).
In addition, Aramco Trading Company is a “related party” in the project, being wholly owned by Saudi Aramco. Saudi Aramco, in turn, owns 70% of SABIC through its subsidiary, Aramco Chemicals.
Now What
SABIC expects the financial impact of the complex to be reflected in its results upon completion and the start of commercial operations in H1-27. It also mentioned that the project would be financed through financial loans and the company’s cash flows.
