Riyadh – Mubasher: Saudi Arabian Oil Company (Aramco) unveiled a Venture Framework Agreement (VFA) with both China Petroleum & Chemical Corporation (Sinopec) and Yanbu Aramco Sinopec Refining Company (Yasref) for a major petrochemical expansion at Yasref in Yanbu.
The agreement seeks to advance engineering studies for the development of a fully-integrated petrochemical complex at Yasref, a joint venture (JV) owned by Aramco (62.5%) and Sinopec (37.5%), according to a press release.
The project aims to maximize operational synergies and create additional value through introducing a state-of-the-art petrochemical unit, a large-scale mixed feed steam cracker with a 1.80 million tons per year capacity, and a 1.50 million tons per year aromatics complex with associated downstream derivatives integrated into the existing Yasref complex.
This is expected to enhance Yasref’s ability to meet growing demand for high-quality petrochemical products.
Aramco President and CEO, Amin Nasser, said: “The Yasref Venture Framework Agreement further deepens and elevates our strategic partnership with Sinopec. The planned expansion project solidifies our commitment to product innovation and diversification.”
Nasser noted: “As we look forward to strengthening our collaboration with Sinopec in making Yasref a leading refining and petrochemicals joint venture, we aim to contribute to growing Saudi Arabia’s position as a global leader in energy and chemicals.”
From his part, Mohammed Al Qahtani, Aramco Downstream President, said: “Our strong relationship with Sinopec continues to build momentum. The planned Yasref expansion aligns with our downstream strategy to unlock the full potential of our resources, including converting up to four million barrels per day of crude oil into petrochemicals by 2030.”
Al Qahtani added: “In partnership with Sinopec, we aim to advance cutting-edge refining and petrochemical capabilities to deliver high-value products, create new opportunities, drive industrial innovation, and enable economic transformation. This highlights our strategic, long-term partnership with Sinopec and it is fitting that the announcement of this project coincides with Yasref’s 10th anniversary.”
Yasref is one of a number of strategic partnerships between Aramco and Sinopec, which also include Sinopec Senmei (Fujian) Petroleum Company (SSPC); Sinopec SABIC Tianjin Petrochemical Company (SSTPC); Fujian Refining & Petrochemical Company (FREP); and a new integrated refining and petrochemical complex being developed in Fujian Province, China.
Through such projects, the two groups aim to strengthen energy security, fuel industrial innovation, foster long-term co-operation, and contribute to the global economy.
Sinopec President, Zhao Dong, said: “Yasref, a flagship joint venture symbolizing China-Saudi energy cooperation, has not only served as a key driver for Saudi Arabia’s local economic growth but also actively advanced petrochemical industry upgrades.”
Dong concluded: “The Yasref expansion project represents a significant milestone in our bilateral partnership, ushering in a new phase of deeper and more far-reaching collaboration. We expect the Yasref expansion project to unlock new dimensions of collaborative potential as we navigate the energy transition. Sinopec and Aramco are poised to establish a world-class, integrated refining and petrochemical complex distinguished by comprehensive competitive advantages, aiming to redefine traditional energy cooperation models and expand new frontiers for more sustainable development.”
It is worth noting that Aramco generated net profits worth SAR 398.42 billion in 2024 as well as SAR 1.63 trillion in revenue.
