Core Insights - China Petroleum & Chemical Corporation (Sinopec) Shanghai Petrochemical Company Limited announced the candidates for the bidding of its comprehensive technical transformation and quality upgrade project, which includes a 200,000 tons/year butadiene extraction unit, a 700,000 tons/year catalytic gasoline hydrogenation unit, and a 400,000 tons/year aromatics extraction unit [1][2] Group 1: Project Details - The project involves multiple units: 200,000 tons/year butadiene extraction unit, 700,000 tons/year catalytic gasoline hydrogenation unit, and 400,000 tons/year aromatics extraction unit [1] - The announcement was made on November 13, 2025, and the bidding was conducted by Sinopec Shanghai Petrochemical Company [2] Group 2: Company Activities - Sinopec Shanghai Petrochemical Company has invested in 22 enterprises and participated in 25,144 bidding projects [1] - The company holds 65 trademark registrations, 1,332 patents, and 9 copyright registrations, along with 12,789 administrative licenses [1]

Core Viewpoint - The establishment of the joint venture company, Fujian Zhong-A Refining and Chemical Co., Ltd., marks a significant investment in the refining and chemical sector, with a total investment of 711 billion RMB, focusing on the integrated refining and chemical project in Fujian [3][4]. Group 1: Joint Venture Details - The joint venture was officially registered on September 4, with a registered capital of 28.8 billion RMB, where Fujian Refining and Chemical Co., Ltd. holds 50%, Sinopec holds 25%, and Saudi Aramco's subsidiary holds 25% [3]. - This project is the largest single investment in refining by Sinopec and the largest industrial project in Fujian province to date, representing a new model of energy cooperation between China and Saudi Arabia [3]. Group 2: Project Investment and Construction - The total investment for the project is 711 billion RMB, with plans for full production by 2030, including the construction of over 30 refining and chemical units [4]. - Key refining capacities include: 16 million tons/year of atmospheric distillation, 3.8 million tons/year of light hydrocarbon recovery, and various hydrogenation and cracking units [4]. - Chemical production will include: 1.5 million tons/year of steam cracking, 600,000 tons/year of hydrogenation of cracked gasoline, and multiple other chemical units [4]. Group 3: Saudi Aramco's Strategic Moves - Saudi Aramco's downstream president stated that this project signifies a new step in their investment in China, with plans to supply over 1 million barrels of crude oil daily to China, enhancing the "oil-to-chemicals" transition [5]. - Saudi Aramco has been actively increasing its market presence in China, with significant investments and partnerships, including a recent agreement with Rongsheng Petrochemical [5]. - The company aims to participate in various large-scale refining and chemical projects in China, indicating a strategic focus on the Chinese market [6][7].