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Project Snapshots
Fujian Venture
Facility Type: Upgrader
Scope: Expansion
Owner: Sinopec Fujian Petrochemical Co. Ltd.
Location: Quanzhou, Fujian Province
Region: East China
Modified: [Nov. 3, 2010]
Project description:

Facility description
The Sinopec Fujian Petrochemical Co. Ltd. (FPCL) refinery in the city of Quanzhou in China’s Fujian province began operation in 1993 with a processing capacity of approximately 50,200 b/d. In 1997, the capacity increased to the present 80,000 b/d. The existing facility primarily processes sweet imported crude oil into products such as lead-free motor gasoline, light diesel oil, and #3 jet fuel.

Expansion project

The existing facility serves as the foundation of a major project upon which ExxonMobil, Saudi Aramco, and FPCL have embarked. This "Fujian Venture" is the first fully integrated refining, petrochemical, and fuels marketing venture with foreign participation in China.

Launched in mid-2007, the Fujian Venture relies upon an integrated approach that will facilitate participation across the value chain: from crude supply and processing through product manufacturing to fuels and chemical marketing. The venture came to fruition after the three companies made a series of commercial and technical agreements over a 12-year period. FPCL holds a 50% stake in the venture while ExxonMobil China Petroleum & Petrochemical Co. Ltd. and Saudi Aramco Sino Co. Ltd. each own 25%.

Under the deal, ExxonMobil’s Esso brand will be on display (along with the Saudi Aramco and Sinopec brands) at many more mainland China retail locations--from the present 18 to 750.

The petrochemical complex will be integrated with the refinery. Also, the refinery will transition from a lower-conversion refinery that processes sweet crude to a high-conversion refinery that primarily processes sour Arabian crude.

The world-scale integrated chemical plant will feature a new 800,000-t/y ethylene steam cracker and integrated polyethylene, polypropylene, and paraxylene units with capacities of 800,000 t/y, 400,000 t/y, and 700,000 t/y, respectively.

In Phase 1 of the project, the refinery will be designed to process 5M t/y (100,402 b/d) of heavy oil. Its capacity will jump to 12M t/y (240,964 b/d) after Phase 2. Phase 1 includes refinery, dock, storage, and logistics facilities. Sinochem announced in early March 2008 that it has signed an initial deal with Saudi Arabia and Kuwait to import heavy oil for the facility.

According to ExxonMobil, the Fujian Venture marks the first time the company has built or expanded a refinery and petrochemical complex of this scale simultaneously. "We typically have built petrochemical complexes, but typically after the refinery is well-established," Ed Palkot, senior planning associate in ExxonMobil Chemical’s olefins global business unit, said in a June 1, 2007, company announcement. "That obviously adds to the complexity and scope of the project, but it’s also a unique opportunity to optimize between refining and chemicals right from day one."

According to Sinopec’s annual report for 2007, the project is expected to conclude in early 2009.

According to an Asiaport Daily News Report, Sinopec is seeking government regulators to expand the refinery yet again to 482,000 b/d from 2010 through 2015. In addition, Sinopec reportedly is considering expanding the annual production capacity of the refinery’s ethylene cracking facilities from 800,000 to 1 million tons.

 

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