ExxonMobil China Petroleum and Petrochemical Co. Ltd. plans to increase polyethylene capacity to the China market by almost 2 billion pounds a year through a joint venture in Fujian Province with Saudi Aramco Sino Co. Ltd. and China Petroleum and Chemical Corp., also known as Sinopec.
The joint venture company, registered in China as Fujian Refining & Petrochemical Co. Ltd., already operates a refinery in Quanzhou. The expanded refining capability and petrochemical facilities will come on line in early 2009.
The new Fujian facility will have two PE units each with 880 million pounds of capacity per year, an 880 million-pound-capacity polypropylene unit and a paraxylene unit, according to ExxonMobil China, headquartered in Beijing.
The PE units will use technology supplied by Univation Technologies, a venture between ExxonMobil Chemical Co. of Houston and Dow Chemical Co. of Midland, Mich.
The joint venture is owned 50 percent by Fujian Petrochemical Co. Ltd., a Sinopec subsidiary, and 25 percent each by ExxonMobil China and Saudi Aramco Sino.
ExxonMobil Chemical Vice President Jim Harris said his firm will boost capacity 60 percent in Asia by 2012. ExxonMobil also plans to expand capacity in Singapore, China and Saudi Arabia. It is studying plans for a world-scale petrochemical site in Qatar.
``By 2015 we expect Asia will account for 50 percent of global demand for key commodity projects, and China alone will represent 25 percent,'' Harris said at Chinaplas in Guangzhou.