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.
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