Sinopec Fujian petrochemical joint venture starts up operation
Photo courtesy of Sinopec

Sinopec Fujian petrochemical joint venture starts up operation

Fujian Gulei Petrochemical Co Ltd, the largest Chinese mainland and Taiwanese petrochemical joint venture, started up its ethylene oxide/ethylene glycol (EO/MEG) unit this month in Zhangzhou, Fujian province. The joint venture is owned by Sinopec’s Fujian Petrochemical Company Ltd and Taiwan Xuteng Investment Company Ltd.

The project has faced several delays. China Petroleum and Chemical Corporation or Sinopec formed the Gulei Petrochemical joint venture in 2016, and was targeting first production in 2019. But progress remained slow and the project design was only approved in mid-2018.

Construction of the Gulei Petrochemical project started in June 2019. The project’s first phase, which covers an area of 5.46 square kilometres, was completed in April 2021. Total investment in the first phase was CNY27.8 billion (USD4.28 billion).

Sinopec owns 25% of the joint venture, while Sinopec Fujian Petrochemical owns 25% and Xuteng Investment owns 50%.

A 320,000 barrel-per-day oil refinery and 1 million tonne per year ethylene cracker are planned for the second phase. Sinopec said it is speeding up development of the second phase of the project, which will double the JV project’s annual ethylene capacity from the initial 700,000 tonnes to 1.4 million tonnes. Total annual capacity after the completion of the second phase will boost total chemical output from 3 million tonnes to 4.2 million tonnes.

“The launch of the project will provide high-quality raw materials for industries such as plastics, rubber, textiles, clothing, electronics and instrument manufacturing in Zhangzhou and the surrounding areas,” said Sinopec.

The general design consultant for the project is Sinopec Engineering Group Co Ltd. The feasibility and design consultant is CCCC-FHDI Engineering Co Ltd.