- Agreement sets the stage for major petrochemical investment
- Engineering work is underway for a fully integrated petrochemical complex at Yasref’s Yanbu facility
- Expansion aims to enhance production capacity and diversify product offerings
- Announcement marks Yasref’s 10th anniversary
Aramco, one of the world’s leading energy and chemical companies, has signed a landmark Venture Framework Agreement (VFA) with China Petroleum & Chemical Corporation (Sinopec) and Yanbu Aramco Sinopec Refining Company (Yasref). This agreement marks a major step toward expanding petrochemical operations at the Yasref refinery, located in Yanbu on Saudi Arabia’s western coast.
Timed to coincide with Yasref’s 10th anniversary, the agreement supports the initiation of engineering studies for the development of a world-class, fully integrated petrochemical complex. Yasref, a joint venture owned by Aramco (62.5%) and Sinopec (37.5%), is set to benefit from this expansion through the addition of a state-of-the-art petrochemical unit. This includes a large-scale mixed-feed steam cracker with a capacity of 1.8 million tons per year and an aromatics complex capable of producing 1.5 million tons annually, along with various downstream units seamlessly integrated into the existing site. These upgrades aim to boost Yasref’s ability to meet increasing global demand for high-quality petrochemical products.
Amin H. Nasser, President & CEO of Aramco, commented:
“This agreement deepens our longstanding partnership with Sinopec and reinforces our shared commitment to product innovation and diversification. As we work together to strengthen Yasref’s position as a leading player in the refining and petrochemical sector, we’re also contributing to Saudi Arabia’s vision of being a global hub for energy and chemicals.”
Mohammed Y. Al Qahtani, Aramco’s Downstream President, added:
“Our partnership with Sinopec continues to gain momentum. The Yasref expansion is closely aligned with our strategy to unlock the full potential of our resources, including converting up to four million barrels of crude oil per day into petrochemicals by 2030. Together, we aim to push the boundaries of refining technology, create high-value products, and support broader economic transformation.”
Zhao Dong, President of Sinopec, noted:
“Yasref stands as a flagship symbol of China-Saudi cooperation in energy. It has not only contributed significantly to Saudi Arabia’s local economic growth but has also driven advancements in the petrochemical sector. This expansion represents a new chapter in our partnership—one that will bring deeper collaboration and open up fresh opportunities as we navigate the global energy transition. We look forward to building a world-class refining and petrochemical complex with Aramco, reshaping traditional energy models, and championing sustainable development.”
Yasref is one of several strategic collaborations between Aramco and Sinopec. Other joint initiatives include Sinopec Senmei (Fujian) Petroleum Company (SSPC), Sinopec SABIC Tianjin Petrochemical Co. (SSTPC), Fujian Refining & Petrochemical Company (FREP), and a major integrated petrochemical project currently under development in China’s Fujian Province. Together, these partnerships aim to enhance energy security, foster technological innovation, support long-term growth, and contribute to the global economy.