(Yicai) March 28 -- China Petroleum Engineering, a subsidiary of Chinese oil and gas giant China National Petroleum Corporation, has scored a CNY7.3 billion (USD1 billion) engineering, procurement and construction contract to build a petrochemicals plant for a Chinese joint venture with Saudi Basic Industries Corporation, one of the world’s largest petrochemicals producers.

China Petroleum Engineering 's unit China Huanqiu Contracting and Engineering will construct production lines and ancillary equipment for the factory, which will have an annual output of 1.5 million tonnes of ethylene plus many other downstream chemicals, Beijing-based China Petroleum Engineering said yesterday, citing the deal penned by the two parties. The plant should be up and running by Nov. 30, 2026.

The complex, located in southeastern Fujian province, is owned by Fujian Zhongsha Petrochemical, a JV set up by SABIC unit SABIC Industrial Investment and a subsidiary of Fujian Energy Petrochemical Group, Fujian Fuhua Gulei Petrochemical, in January with an investment of CNY44.8 billion (USD6.2 billion).

“China is one of the world's core chemical markets and a key strategic market for SABIC,” said SABIC Chief Executive Officer Abdulrahman AI-Fegeeh at the complex’s groundbreaking ceremony in February. “SABIC will continue to increase its investment in China and work with local partners to contribute to China's high-quality and sustainable development.”

China Petroleum Engineering 's share price [SHA:600339] closed up 1.6 percent at CNY3.13 (USD0.43) today.

Editor: Kim Taylor