Fujian Integrated Refining and Ethylene Project Kicks off

On July 8, a ceremony of groundbreaking for the Fujian integrated refining and ethylene joint venture project (FIREP) was held in Quanzhou, Fujian province, marking the beginning of construction. The investors are composed of Fujian Petrochemical Co., Ltd. (50%), ExxonMobil China Petrochemical Co., Ltd. (25%), and Aramco Overseas Co. B.V. (AOC) (25%), with a total investment of US$28.874 billion.    Located in Quangang district, Quanzhou city in southeastern China’s coastal Fujian province, the project encompasses 176 hectares. The Chinese government approved the project’s feasibility report in September 2002, and in August 2004 the three partners signed the front-end loading agreement and officially started the basic design of the project. The project is scheduled to be completed by the end of 2008.      The project will provide the world’s advanced hydrocarbon processing technology to Fujian Petrochemical Company. This will increase the company’s existing 4 million t/a, refining facilities by adding 8 million t/a of refining capacity. The plant will be able to process sour crude mainly supplied by Saudi Aramco. New processing units and corresponding facilities also will be built, including the production lines of 800 000 t/a ethylene, 650 000 t/a polyethylene, 400 000 t/a polypropylene, 700 000 t/a paraxylene, and 1 million t/a aromatics. Construction is also under way on a 300 000 t/a crude terminal. Ultimately, the plant will produce 7 million t/a combined of high-quality product, including gasoline and diesel that meet Euro-III Emission Standards. Mechanical completion of the refining units is projected by the end of 2007, with commercial startup by the end of March 2008. Mechanical completion of the chemical units is planned by the end of July 2008, with startup by December 2008.      Presently Sinopec Corp., Exxon-Mobile China Company and Aramco Overseas Co. B.V. are planning to form a joint venture to market the oil products from FIREP. (CCR2004 No.25)