Saudi Aramco, China Petroleum & Chemical Corporation (Sinopec), and Yanbu Aramco Sinopec Refining Company (Yasref) have announced the signing of a Venture Framework Agreement (VFA) aimed at expanding Yasref’s petrochemical capabilities. The agreement, which marks a significant milestone for Yasref, is expected to enhance its global standing in the petrochemical sector and meet the growing demand for high-quality petrochemical products, according to Economy Middle East.

The expansion project will involve the establishment of a fully integrated petrochemical complex at Yasref, where Aramco holds a 62.5 percent stake and Sinopec owns 37.5 percent. This initiative will leverage operational synergies and introduce a new petrochemical unit featuring a large-scale mixed feed steam cracker with a capacity of 1.8 million tons per year. Additionally, the project will include a 1.5 million tons per year aromatics complex and associated downstream derivatives, thereby significantly boosting Yasref’s production capabilities.

Amin H. Nasser, Aramco’s president and CEO, highlighted that this agreement deepens the partnership with Sinopec and reinforces their commitment to product innovation and diversification. He stated that the planned expansion solidifies their collaborative efforts to establish Yasref as a leading refining and petrochemicals joint venture, contributing to Saudi Arabia’s position as a global leader in energy and chemicals.

Mohammed Y. Al Qahtani, Aramco’s downstream president, indicated that the Yasref expansion aligns with their downstream strategy, which aims to convert up to four million barrels per day of crude oil into petrochemicals by 2030. He emphasized the importance of advancing refining and petrochemical capabilities in partnership with Sinopec to deliver high-value products and drive industrial innovation.

Sinopec’s president, Zhao Dong, noted that Yasref symbolizes the energy cooperation between China and Saudi Arabia. He remarked that the expansion project represents a significant milestone in their bilateral partnership, expected to unlock new collaborative potential as they navigate the energy transition. Dong expressed confidence that Aramco and Sinopec would create a world-class integrated refining and petrochemical complex that redefines traditional energy cooperation models and fosters sustainable development.

Yasref is part of a broader strategic alliance between Aramco and Sinopec, which also includes several other joint ventures aimed at enhancing energy security and promoting industrial innovation. Through these partnerships, both companies intend to contribute significantly to the global economy and foster long-term cooperation.