Aramco, Sinopec and Yasref agree on petrochemical expansion plan

Aramco, Sinopec, and Yanbu Aramco Sinopec Refining Company (Yasref) have signed a Venture Framework Agreement (VFA) to advance the development of a major petrochemical expansion at the Yasref complex, located on Saudi Arabia’s west coast.

The agreement, which coincides with Yasref’s 10th anniversary, sets the stage for detailed engineering studies on a new, fully integrated petrochemical complex. The planned expansion will include a 1.8 million tonnes per year mixed-feed steam cracker and a 1.5 million tonnes per year aromatics complex, along with associated downstream units. These will be integrated into the existing Yasref refinery infrastructure, a joint venture between Aramco (62.5%) and Sinopec (37.5%).

Amin H. Nasser, president and CEO of Aramco, said the agreement strengthens the strategic partnership with Sinopec and reflects the company’s commitment to product innovation and diversification. “We aim to contribute to Saudi Arabia’s position as a global leader in energy and chemicals,” he said.

Mohammed Y. Al Qahtani, Aramco’s Downstream president, added that the expansion aligns with Aramco’s strategy to convert up to four million barrels of crude oil per day into petrochemicals by 2030. “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 President Zhao Dong described Yasref as a flagship joint venture and a symbol of China–Saudi energy cooperation. “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.”

The new complex is expected to enhance Yasref’s ability to meet the rising demand for high-quality petrochemical products while maximising operational synergies within the existing site.

Yasref is one of several collaborative projects between Aramco and Sinopec, including ventures in China such as Sinopec Senmei (Fujian) Petroleum Company and the Sinopec SABIC Tianjin Petrochemical Co. The two companies continue to work together on initiatives aimed at strengthening energy security, fostering long-term industrial partnerships, and supporting global economic growth.