Aramco and Sinopec sign agreement for major expansion at Yasref
Saudi Aramco and China Petroleum & Chemical Corporation (Sinopec) are planning a major expansion to the Yanbu Aramco Sinopec Refining Company (Yasref) on the west coast of Saudi Arabia.
On Yasref's 10th anniversary, the two partners (Aramco 62.5 per cent stake and Simopec 37.5 per cent) will build a state-of-the-art petrochemical unit, a large-scale mixed feed steam cracker with a 1.8 million tons per year capacity, and a 1.5 million tons per year aromatics complex with associated downstream derivatives integrated into the existing Yasref complex.
Aramco, Sinopec deepen ties
The Venture Framework Agreement (VFA) seeks to advance engineering studies for the development of a fully integrated petrochemical complex, which aims to maximise operational synergies and create additional value that is expected to enhance Yasref's ability to meet the growing demand for high-quality petrochemical products.
Amin Nasser, Aramco President & CEO, commented: '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.'
The planned expansion aligns with Aramco's downstream strategy to unlock the full potential of Saudi resources, including converting up to four million barrels per day of crude oil into petrochemicals by 2030.
Zhao Dong, Sinopec President, added: 'Yasref, a flagship joint venture symbolising 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.'
Yasref is one of a number of strategic partnerships between Aramco and Sinopec, which also include Sinopec Senmei (Fujian) Petroleum Company (SSPC); Sinopec SABIC Tianjin Petrochemical Company (SSTPC); Fujian Refining & Petrochemical Company (FREP); and a new integrated refining and petrochemical complex being developed in Fujian Province in China.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
28 minutes ago
- Khaleej Times
Auto companies 'in full panic' over rare-earths bottleneck
Frank Eckard, CEO of a German magnet maker, has been fielding a flood of calls in recent weeks. Exasperated automakers and parts suppliers have been desperate to find alternative sources of magnets, which are in short supply due to Chinese export curbs. Some told Eckard their factories could be idled by mid-July without backup magnet supplies. "The whole car industry is in full panic," said Eckard, CEO of Magnosphere, based in Troisdorf, Germany. "They are willing to pay any price." Car executives have once again been driven into their war rooms, concerned that China's tight export controls on rare-earth magnets – crucially needed to make cars – could cripple production. US President Donald Trump said Friday that Chinese President Xi Jinping agreed to let rare earths minerals and magnets flow to the United States. A US trade team is scheduled to meet Chinese counterparts for talks in London later on Monday. The industry worries that the rare-earths situation could cascade into the third massive supply chain shock in five years. A semiconductor shortage wiped away millions of cars from automakers' production plans, from roughly 2021 to 2023. Before that, the coronavirus pandemic in 2020 shut factories for weeks. Those crises prompted the industry to fortify supply chain strategies. Executives have prioritized backup supplies for key components and reexamined the use of just-in-time inventories, which save money but can leave them without stockpiles when a crisis unfurls. Judging from Eckard's inbound calls, though, "nobody has learned from the past," he said. This time, as the rare-earths bottleneck tightens, the industry has few good options, given the extent to which China dominates the market. The fate of automakers' assembly lines has been left to a small team of Chinese bureaucrats as it reviews hundreds of applications for export permits. Several European auto-supplier plants have already shut down, with more outages coming, said the region's auto supplier association, CLEPA. "Sooner or later, this will confront everyone," said CLEPA Secretary-General Benjamin Krieger. Cars today use rare-earths-based motors in dozens of components – side mirrors, stereo speakers, oil pumps, windshield wipers, and sensors for fuel leakage and braking sensors. China controls up to 70 per cent of global rare-earths mining, 85 per cent of refining capacity and about 90 per cent of rare-earths metal alloy and magnet production, consultancy AlixPartners said. The average electric vehicle uses about .5 kg of rare earths elements, and a fossil-fuel car uses just half that, according to the International Energy Agency. China has clamped down before, including in a 2010 dispute with Japan, during which it curbed rare-earths exports. Japan had to find alternative suppliers, and by 2018, China accounted for only 58 per cent of its rare earth imports. "China has had a rare-earth card to play whenever they wanted to," said Mark Smith, CEO of mining company NioCorp, which is developing a rare-earth project in Nebraska scheduled to start production within three years. Across the industry, automakers have been trying to wean off China for rare-earth magnets, or even develop magnets that do not need those elements. But most efforts are years away from the scale needed. "It's really about identifying ... and finding alternative solutions" outside China, Joseph Palmieri, head of supply chain management at supplier Aptiv, said at a conference in Detroit last week. Automakers including General Motors and BMW and major suppliers such as ZF and BorgWarner are working on motors with low-to-zero rare-earth content, but few have managed to scale production enough to cut costs. The EU has launched initiatives including the Critical Raw Materials Act to boost European rare-earth sources. But it has not moved fast enough, said Noah Barkin, a senior advisor at Rhodium Group, a China-focused U.S. think tank. Even players that have developed marketable products struggle to compete with Chinese producers on price. David Bender, co-head of German metal specialist Heraeus' magnet recycling business, said it is only operating at 1% capacity and will have to close next year if sales do not increase. Minneapolis-based Niron has developed rare-earth free magnets and has raised more than $250 million from investors including GM, Stellantis and auto supplier Magna. "We've seen a step change in interest from investors and customers" since China's export controls took effect, CEO Jonathan Rowntree said. It is planning a $1 billion plant scheduled to start production in 2029. England-based Warwick Acoustics has developed rare-earth-free speakers expected to appear in a luxury car later this year. CEO Mike Grant said the company has been in talks with another dozen automakers, although the speakers are not expected to be available in mainstream models for about five years. As auto companies scout longer-term solutions, they are left scrambling to avert imminent factory shutdowns. Automakers must figure out which of their suppliers – and smaller ones a few links up the supply chain – need export permits. Mercedes-Benz, for example, is talking to suppliers about building rare-earth stockpiles. Analysts said the constraints could force automakers to make cars without certain parts and park them until they become available, as GM and others did during the semiconductor crisis. Automakers' reliance on China does not end with rare earth elements. A 2024 European Commission report said China controls more than 50% of global supply of 19 key raw materials, including manganese, graphite and aluminum. Andy Leyland, co-founder of supply chain specialist SC Insights, said any of those elements could be used as leverage by China. "This just is a warning shot," he said.
Zawya
2 hours ago
- Zawya
BAIC Announces 2025 Vehicle Lineup for International Automotive &Supply Chain EXPO (HONG KONG)
HONG KONG SAR - Media OutReach Newswire - 9 June 2025 - From June 12 to 15, the INTERNATIONAL AUTOMOTIVE&SUPPLY CHAIN EXPO in Hong Kong will host a major international auto show under the theme "New Car, New Journey." The event will bring automakers, experts and media together showcasing future mobility innovation and trends. At the upcoming exhibition, BAIC Group will present both passenger and commercial lineup, such as the BJ40PLUS RHD and X55 II RHD. BEV models include ARCFOX αS5, ARCFOX αT5 and STELATO S9(REEV). Internationalization is one of BAIC Group's core the general platform of internationalization, BAIC INTL comprehensively coordinates the overseas business. Since its established in 2013, BAIC INTL has expanded to more than 50 countries, establish nearly 300 sales network , and set up eight KD plants—including one wholly owned overseas production base. Its portfolio consists of three distinct brands: BAIC, focused on mainstream and off-road models; ARCFOX, a high-end NEV brand expanding from electric to hybrid offerings; and STELATO, targeting the luxury new energy segment. At the show, BAIC will unveil a range of advanced technologies, including its self-developed Polaris EV platform and the world's first AI-integrated cockpit system. Driven by artificial intelligence, the company is building a closed-loop innovation system that connects user insight, product development, and after-sales service—enabling continuous product evolution and a more intelligent mobility experience. From June 12 to 15, visit Booth C02, Hall 6 at AsiaWorld-Expo to discover how BAIC is driving the next chapter of global mobility—powered by technology, guided by innovation. Hashtag: #BAIC The issuer is solely responsible for the content of this announcement. BAIC INTL.
Zawya
3 hours ago
- Zawya
Oil prices steady ahead of US-China trade talks
Oil prices were stable on Monday as investors awaited U.S.-China trade talks in London in the hope that a deal could boost the global economic outlook and subsequently fuel demand. Brent crude futures gained 11 cents, or 0.2%, to $66.58 a barrel by 1312 GMT while U.S. West Texas Intermediate crude rose by 6 cents, or 0.1%, to $64.64. Brent rose 4% last week and WTI 6.2% as the prospect of a U.S.-China trade deal boosted risk appetite for some investors. U.S. President Trump and China's leader Xi Jinping spoke on the telephone on Thursday before U.S. and Chinese officials meet in London on Monday in an effort to calm trade tensions between the two nations. A trade deal between the U.S. and China could support the global economic outlook and in turn boost demand for commodities including oil. Monday's talks could dampen the impact on prices of a slew of Chinese data releases, said IG market analyst Tony Sycamore. Chinese export growth slowed to a three-month low in May as U.S. tariffs curbed shipments while factory gate deflation deepened to its worst in two years, heaping pressure on the world's second-largest economy at home and abroad. "Bad timing for crude oil, which was testing the top of the range and knocking on the door of a technical break above $65," Sycamore said, referring to WTI prices. The data also showed that China's crude oil imports declined in May to the lowest daily rate in four months as state-owned and independent refiners began planned maintenance. The prospect of a potential China-U.S. trade deal outweighed concern over the price impact from increased output by the OPEC+ group of oil producers next month. (Reporting by Robert Harvey in London, Florence Tan in Singapore and Colleen Howe in Beijing. Additional reporting by Ahmad Ghaddar in London Editing by David Goodman and David Evans)
