Saudi Aramco, China Petroleum & Chemical Corporation (Sinopec), and Yanbu Aramco Sinopec Refining Company (Yasref) have officially announced the signing of a Venture Framework Agreement (VFA) designed to facilitate a significant petrochemical expansion at Yasref, situated in Yanbu on the west coast of Saudi Arabia. This strategic initiative is poised to enhance the capabilities and global standing of Yasref within the petrochemical sector, according to a statement.
Marking a decade of operations, this agreement aims to advance engineering studies for the establishment of a fully integrated petrochemical complex at Yasref, a joint venture where Aramco holds a 62.5 percent stake and Sinopec owns 37.5 percent. The project is further set to capitalize on operational synergies and generate additional value through the introduction of a cutting-edge petrochemical unit, which includes a large-scale mixed feed steam cracker boasting a capacity of 1.8 million tons per year. Additionally, a 1.5 million tons per year aromatics complex, along with associated downstream derivatives, will be integrated into the existing Yasref framework. This development is expected to significantly enhance Yasref’s ability to satisfy the increasing demand for high-quality petrochemical products.
Commitment to product innovation
Amin H. Nasser, Aramco’s president & CEO, emphasized: “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. 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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Strategic downstream strategy
Mohammed Y. Al Qahtani, Aramco’s downstream president, stated: “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. 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.”
Symbolizing China-Saudi energy cooperation
Zhao Dong, Sinopec’s president, remarked: “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. 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.”
Strengthening strategic partnerships
Yasref is one of several strategic alliances between Aramco and Sinopec, which also encompasses Sinopec Senmei (Fujian) Petroleum Company (SSPC), Sinopec SABIC Tianjin Petrochemical Co. (SSTPC), Fujian Refining & Petrochemical Company (FREP), and a new integrated refining and petrochemical complex currently under development in Fujian Province, China. Through these initiatives, both organizations aim to bolster energy security, fuel industrial innovation, foster long-term cooperation, and contribute significantly to the global economy.
