Aramco, Sinopec, and Yasref Sign Agreement for Major Petrochemical Expansion in Saudi Arabia

Aramco, Sinopec, and Yasref sign deal to expand petrochemical operations at Yasref’s Yanbu facility, boosting Saudi Arabia’s position in global energy and chemicals.

Aramco, one of the world’s largest integrated energy and chemicals companies, alongside China Petroleum & Chemical Corporation (Sinopec) and Yanbu Aramco Sinopec Refining Company Yasref, has signed a Venture Framework Agreement (VFA). The deal sets the stage for a significant petrochemical expansion at Yasref’s facility in Yanbu, located on Saudi Arabia’s western coast.

Marking Yasref’s 10-Year Anniversary

Coinciding with Yasref’s 10th year of operations, the agreement will advance engineering studies for developing an integrated petrochemical hub at the existing site. Yasref is a joint venture with Aramco holding a 62.5% stake and Sinopec owning the remaining 37.5%.

The project envisions adding advanced petrochemical units to Yasref’s complex, featuring a state-of-the-art mixed feed steam cracker with a production capacity of 1.8 million tons per year and an aromatics facility capable of 1.5 million tons annually. The expansion will also incorporate downstream products, boosting Yasref’s ability to meet the rising global demand for high-grade petrochemicals

Amin H. Nasser, Aramco’s President and CEO, 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.

He added, “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.”

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Strengthening Long-Term Strategic Partnerships

Yasref is among several collaborations between Aramco and Sinopec, including ventures like Sinopec Senmei (Fujian) Petroleum Company, Sinopec SABIC Tianjin Petrochemical Co., and the Fujian Refining & Petrochemical Company. The partners are also working on a new integrated refining and petrochemical complex in China’s Fujian Province.