Sinopec, SABIC begin petrochemical JV

Sinopec Corp. (Sinopec) and Saudi Basic Industries Corp. (SABIC) began operations of their new joint venture petrochemical complex in Tianjin Nov. 3.

The petrochemical complex, which cost 18.3 billion yuan to build, can produce 1 million tons of ethylene annually and will be operated by the two companies in a 50-50 joint venture called Sinopec SABIC Tianjin Petrochemical Co Ltd.

The complex consists of a 1-million-ton ethylene cracker, eight downstream units and utilities, which have been tested and are ready to begin production by the first quarter of next year. The annual output will be 3.2 million tons, with 1 million tons of ethylene and other downstream products, such as polyethylene, ethylene glycol, polypropylene, butadiene, phenol, and butene-1.

Those products will mainly be sold on the domestic market, with an inroad into overseas markets in future. Sinopec and SABIC may also build other joint petrochemical projects, in China or Saudi Arabia, said Sinopec president Wang Tianpu.

Wang also pointed out that Sinopec's refining capacity during the next three years will gain an annual growth of 12 million to 15 million tons, with expanding its refineries in Shanghai, Yangzi, Jinling, Shijiazhuang, Changling, Maoming and Anqing.

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