A new integrated refining and petrochemical complex in Fujian, China’s largest industrial investment in the province to date, marks a significant milestone in the growing energy collaboration between China and Saudi Arabia. The second phase of the Fujian Gulei project, a joint venture between China Petroleum & Chemical Corp (Sinopec), Saudi Aramco, and Fujian Petrochemical Co Ltd (FPCL), broke ground on Monday and is expected to be fully operational by 2030.
The facility, which will have a refining capacity of 16 million tons per year (320,000 barrels per day), along with an ethylene unit, paraxylene production, and a crude oil terminal, is set to bolster China’s petrochemical industry while securing a stable supply of crude oil from Saudi Arabia.
This project aligns with Saudi Aramco’s strategy to expand its footprint in key markets like China, while ensuring the country’s energy security. According to Wang Lining, director at China National Petroleum Corp (CNPC), the integrated refining and petrochemical operations will create deeper economic interdependence between the two nations. The project supports China’s ambitions to transition its petrochemical industry towards higher-value, greener products and provides a model for future high-end industrial development.
As the largest industrial investment in Fujian, the complex is expected to stimulate local economic growth by creating jobs, attracting further investments, and enhancing the regional supply chain. This expansion is part of a broader effort by China and Saudi Arabia to strengthen bilateral economic ties, particularly in energy, infrastructure, digital economy, and green development.
Saudi Arabia has been China’s largest trading partner in the Middle East since 2001, with bilateral trade reaching $107.23 billion in 2023. Saudi Finance Minister Mohammed Al-Jadaan expressed the country’s eagerness to align development strategies with China for mutual prosperity. Saudi Aramco’s downstream president, Mohammed Y. Al Qahtani, highlighted that the project will expand the company’s growing investment in China, with plans to supply over 1 million barrels per day of crude oil to the complex.