The total investment is about 44.8 billion! The main project of Zhongsha Gulei Ethylene Project has started construction comprehensively
On February 18-19, Fujian Zhongsha Petrochemical Co., Ltd. (Fujian Zhongsha), a joint venture between Fujian Energy Petrochemical Group and Saudi Basic Industries Corporation (SABIC), held a comprehensive groundbreaking event and a series of agreement signing ceremonies for the main project of the Zhongsha Gulei Ethylene Project in Fujian.
On the afternoon of February 18th, Zhou Zuyi, Secretary of the Fujian Provincial Party Committee, and Zhao Long, Deputy Secretary of the Fujian Provincial Party Committee and Governor, met with Abdulrahman Al Faji, CEO of SABIC, and his delegation in Xiamen, Fujian, and jointly witnessed the signing of a series of agreements. Fujian Energy Petrochemical Group and SABIC have signed relevant documents to deepen their cooperation on sustainable development. The two sides will further deepen comprehensive cooperation in energy conservation and emission reduction, technological improvement, product research and development, equipment optimization, talent exchange, and other aspects to promote the achievement of sustainable development goals. The EPC contract for the Zhongsha Gulei Ethylene Project was awarded and the project financing loan agreement was signed simultaneously.
On the morning of February 19th, the Zhongsha Gulei Ethylene Project held a comprehensive groundbreaking event for the main project in Zhangzhou, Fujian. Guo Ningning, member of the Standing Committee of the Fujian Provincial Party Committee and Executive Vice Governor, and Abdulrahman Al Faji, CEO of SABIC, announced the full commencement of the main project of the Zhongsha Gulei Ethylene Project.
Fujian Provincial Party Secretary Zhou Zuyi stated that currently, we are focusing on promoting the integrated and refined development of the petrochemical industry, creating a market-oriented, rule of law, and international first-class business environment. Domestic and foreign petrochemical enterprises have enormous potential and broad space for development in Fujian. We hope that both sides can work together to promote the landing of more high-quality projects, promote the early production and effectiveness of existing projects, explore larger international markets, accelerate the construction of the China Saudi Arabia (Fujian) Industrial Cooperation Demonstration Zone, focus on creating a benchmark for China Saudi Arabia industrial cooperation and a green petrochemical model, achieve mutual benefit and win-win results, and continuously enhance friendship.
SABIC CEO Abdulrahman Al Fati stated that the SABIC Fujian Petrochemical Complex (Zhongsha Gulei Ethylene Project) is another milestone in SABIC's development in China, and also marks an important step towards SABIC's goal of becoming an outstanding leader in the global chemical industry. SABIC has always been committed to providing customers with diverse solutions, enhancing shareholder value, and actively promoting industry upgrading and development. China, as one of the global core chemical markets, is a key strategic market for SABIC. In the future, SABIC will continue to increase its investment in China, work hand in hand with local partners, fully leverage its core advantages, and contribute to China's high-quality sustainable development.
The Zhongsha Gulei Ethylene Project is located in Gulei Petrochemical Base, one of the seven major petrochemical bases in China. It is built by Fujian Zhongsha Construction, which was established in March 2022. Fujian Fuhua Gulei Petrochemical Co., Ltd., controlled by Fujian Energy Petrochemical Group, and Saudi Arabia Industrial Investment Company, a wholly-owned subsidiary of SABIC, hold a 49%: 51% equity stake. The total investment of the project is about 44.8 billion yuan (approximately 6.4 billion US dollars), and the final investment decision of SABIC was announced in January this year. It is an important node for Fujian Energy and Petrochemical Group and SABIC to promote cross regional cooperation and win-win results. The project is expected to be completed in 2026, with an estimated annual production capacity of up to 1.8 million tons of ethylene. It not only meets the market and customer demand for high-end chemical products, but also drives downstream investment opportunities in the industry chain.
