Aramco and Sinopec plan major Yasref expansion to boost petrochemical output
RIYADH: A major petrochemical industry expansion is set for Saudi Arabia's west coast as Aramco, Sinopec, and Yasref advance plans to develop a fully integrated complex in Yanbu.
The three companies have signed a venture framework agreement to advance engineering studies for the project, adding new high-capacity facilities to the Yasref, short for Yanbu Aramco Sinopec Refining Co., site.
Announced during Yasref's 10th anniversary, the agreement will advance the construction of a mixed-feed steam cracker with an annual capacity of 1.8 million tons and a 1.5 million tonnes-per-year aromatics complex, complete with associated downstream derivatives.
The project is part of Aramco's long-term downstream strategy to transition from primarily an oil producer to an integrated energy and chemicals company.
'The Yasref Venture Framework Agreement further deepens and elevates our strategic partnership with Sinopec,' said Amin Nasser, Aramco's president and CEO.
'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,' he added.
Aramco has outlined plans to convert up to 4 million barrels per day of crude oil into petrochemicals by 2030, aligning with the Kingdom's Vision 2030 goal to diversify the economy away from oil dependence.
Yasref, a joint venture between Aramco — which holds 62.5 percent equity — and Sinopec, with 37.5 percent, is central to this strategy and serves as a key hub for refining and petrochemical integration on the Red Sea coast.
The new expansion is expected to optimize synergies across existing operations and enhance the joint venture's ability to meet rising global demand for high-value petrochemical products.
'Our strong relationship with Sinopec continues to build momentum,' said Mohammed Al-Qahtani, Aramco downstream president.
'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,' he 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,' he said.
Sinopec, one of China's largest state-owned energy firms, has increasingly invested in joint ventures abroad as part of Beijing's broader Belt and Road Initiative.
The BRI is a global development strategy introduced by China in 2013, aiming to enhance international trade and stimulate economic growth across Asia, Africa, and Europe.
Inspired by the ancient Silk Road trade routes, the BRI seeks to create a vast network of transportation, energy, and telecommunications infrastructure.
'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,' said Zhao Dong, Sinopec's president.
'The Yasref expansion project represents a significant milestone in our bilateral partnership, ushering in a new phase of deeper and more far-reaching collaboration,' he added.
The move reinforces the Kingdom's growing petrochemical ambitions as global energy markets pivot toward downstream products amid uncertain demand growth for transportation fuels.
Petrochemicals are projected to account for over a third of oil demand growth through 2030, according to the International Energy Agency, as usage in plastics, packaging, and industrial products continues to rise in emerging economies.
Yasref is one of a number of strategic partnerships between Aramco and Sinopec, which also include Sinopec Senmei Petroleum Co., Sinopec SABIC Tianjin Petrochemical Co., and Fujian Refining & Petrochemical Co.
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