The SABIC and Sinopec joint venture project is expected to start commercial production during the second half of 2010, according to Wang Tianpu president of Sinopec, speaking at the JV signature ceremony held in China today.
The US$2.66bn (CNY 18.2bn) project is located in the Tianjin petrochemical complex currently under construction in Tianjin, China.
The complex's overall production capacity is rated at approximately 3.2m tonnes of various petrochemical products, including 1.2m tonnes of ethylene and other downstream products such as Polyethylenes, Ethylene Glycol, Polypropylene (PP), Butadiene, Phenol, & Butene-1.
SABIC revealed last July that it had received an official approval from the Chinese National Development and Reform Commission to participate jointly with China Petroleum & Chemical Corporation (Sinopec).
Meanwhile, Sinopec has said it will buy around 1 million barrels per day of crude from Saudi Arabia next year, a volume nearly 30% above the current rate, to feed expanding refining capacities.
The Asian refiner aims to process 205 million tonnes of crude in 2010, or 4.1 million bpd, its president Wang Tianpu said, a target 14 percent higher than the average rate of 3.59 million bpd for the first three quarters of this year.
The expansion comes following news that demand in the world's second-largest oil user is set to maintain robust growth after rebounding from sharp slowdowns in late 2008 and early 2009.