Global Capacity Dynamics: SABIC China Fujian Gulei 1.8 million Tons Ethylene Project Enters Test Sprint, November 2026

By SKYSEVEN Chemical Technical Team · 2026-10-13

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On October 3, SABIC Fujian Petrochemical Complex (Zhongsha Gulei Ethylene Project), a joint venture between SABIC and Fujian Fuhua Gulei Petrochemical Company, entered the final stage before it was put into operation. The polyolefin plant started trial run and is scheduled to be put into operation in November 2026. The approved scale of ethylene is 1.5 million tons/year, and the design ceiling is up to 1.8 million tons/year, making it one of the largest single ethylene plants in the world.

On October 3, SABIC Fujian Petrochemical Complex (Zhongsha Gulei Ethylene Project), a joint venture between SABIC and Fujian Fuhua Gulei Petrochemical Company, entered the final stage before it was put into operation. The polyolefin plant started trial run and is scheduled to be put into operation in November 2026. The approved scale of ethylene is 1.5 million tons/year, and the design ceiling is up to 1.8 million tons/year, making it one of the largest single ethylene plants in the world.

1. Project Core Configuration

project is located in gulei Petrochemical Base, Zhangzhou City, Fujian Province, China(one of China's seven national petrochemical bases), with a total investment of about US $6.4 billion (44.8 billion yuan), is the largest Sino-foreign joint venture project in Fujian. Equity: SABIC's wholly-owned subsidiary holds 51%, Fujian Fuhua Gulei holds 49%, Fujian Zhongsha Petrochemical operates. Construction started in February 2024, in June 2026, the current polyolefin plant test run. The project incorporates 9 SABIC's own proprietary technologies.
Device
capacity (tons/year)
positioning
ethylene cracking
150 (upper 180)
one of the largest single sets in the world
bimodal HDPE
40
packaging, pipe, blow molding
metallocene LLDPE
60
global single series largest
polypropylene
95(40 Impact +55 Homo/Random)
multi-grade PP
EO/Glycol
10/100
polyester raw material
polycarbonate PC
29
optical grade, electronic grade
source: Project EIA and SABIC Public Announcement

localization Strategy of 2. SABIC in China

the project is SABIC's largest single investment in China. Relying on the deep-water port of Gulei, SABIC completes the layout of the local production base in Asia. Previously, its polyolefins and PCs were mainly exported from the Middle East to China by sea, which can shorten the delivery cycle and reduce the risk of logistics and tariff fluctuations when the property is put into production. For traders, SABIC is transforming from a "Middle East exporter" to a "Chinese local supplier", and there will be structural changes in the pricing and delivery model of Far East sources.

Global Polyolefin Supply Pattern Impact and Trade Opportunities in 3.

At present, China and Northeast Asia are in the cycle of concentrated delivery of polyolefin production capacity. Gulei's production will raise China's PE, PP, PC supply and intensify regional competition. However, the product differentiation is obvious: 600000 tons of metallocene LLDPE is the largest single series in the world, and 290000 tons of PC and high-end PP are China's import dependent categories.
For traders, the increase in general polyolefin supply will suppress the spot market, but high-end metallocene PE, optical PC local capacity release, will change China's downstream procurement channels, import substitution space opened. Overlay in 2026 China a number of ethylene projects concentrated landing (China Liaoning Panjin Huajin Ami 1.65 million tons, China Jiangsu Tongzhou Bay Blue Sea New Materials, China Guangdong Huizhou China Sea Shell Phase III, etc.), the regional price game intensified. It is recommended to track the progress of the November test, the release of the first batch of brands and the proportion of export sales, and adjust the inventory and customer layout.

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