China Petroleum & Chemical Corporation (Sinopec), Aramco, and Yanbu Aramco Sinopec Refining Company (YASREF) have signed a Venture Framework Agreement (VFA) intended to pave the way for a major petrochemical expansion at YASREF, in Yanbu. 

Coinciding with YASREF’s 10th anniversary, the agreement seeks to advance engineering studies for the development of a fully-integrated petrochemical complex at YASREF, a joint venture owned by Sinopec (37.5%) and Aramco (62.5%). The partners are willing to take it to the next level with a cutting-edge petrochemical expansion, including a large-scale 1.8 MTA ethylene cracker, a 1.5 MTA aromatics unit, as well as the downstream polyolefin unit, which will be integrated into the existing YASREF complex. This is expected to enhance YASREF’s ability to meet growing demand for high-quality petrochemical products. 

Zhao Dong, Sinopec President, 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. 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.”

Amin H. Nasser, Aramco's President & CEO, said: 
“The VFA further deepens the strategic partnership between Aramco and Sinopec. The YASREF expansion project solidifies our commitment to the innovation and diversification of products. We look forward to strengthening collaboration with Sinopec to help YASREF become a world-class, fully integrated refining and petrochemical complex, consolidating Saudi Arabia’s leading role in energy and chemicals.” 

YASREF is one of a number of strategic partnerships between Sinopec and Aramco, which also include 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 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.

KeyFacts Energy: Aramco Saudi Arabia country profile