Saudi Arabia Basic Industries Corp (SABIC) is already a partner with Sinopec Corp in an ethylene plant owned by Tianjin Petrochemical Corp.
SABIC has partnered with China’s Fujian provincial government to build a petrochemical complex.
In a bourse filing, SABIC said that the MoU signed with Fujian provincial government is meant to diversify its operations, seek new investment opportunities and strengthen the firm’s position in the Chinese market.
The MoU does not have a definitive timeline.
The deal follows US’s Exxon Mobil and Germany’s BASF separate announcements that they are going to build ethylene complexes in southern China’s Guangdong province.
In Fujian, Sinopec operates a joint-venture refining, petrochemical complex in city of Quanzhou in partnership with Saudi Aramco and Exxon Mobil.