Sinopec and Aramco have Entered into a Framework Agreement for a JV to Expand the Yanbu Refinery
Collaboration Aims to Build a World-Class Integrated Refining and Petrochemical Complex
Marking a decade since the inception of the Yanbu Refinery joint venture, China Petroleum & Chemical Corporation and Saudi Arabian Oil Company have signed a framework agreement to further the Yanbu Refinery Expansion Project.
The project intends to make use of current facilities to establish new production units, which will comprise a large-scale mixed feed steam cracker with an annual output of 1.8 million metric tons of ethylene, and a 1.5 million ton per year aromatics plant along with downstream polyolefin units. This initiative will strengthen the synergies between refining and petrochemical sectors, creating an innovative ecosystem that encompasses the entire industry chain. Upon its completion, the expansion is projected to substantially enhance the production capacity for high-end petrochemical products, aid in Saudi Arabia’s industrial diversification strategy, and fulfill the growing demands of the global market.
“The Yanbu Refinery stands as a testament to the strong friendship between China and Saudi Arabia, delivering robust economic benefits and advancing the petrochemical industry’s modernization,” commented Zhao Dong, Sinopec Group President. “This expansion will unlock greater synergies between Sinopec and Aramco, creating a world-leading integrated refining and petrochemical enterprise with global competitiveness. Together, we will contribute to a low-carbon energy transition.”
Aramco President & CEO Amin H. Nasser emphasized, “The Yanbu expansion agreement deepens Aramco’s strategic partnership with Sinopec. By prioritizing product innovation and diversification, we aim to reinforce Saudi Arabia’s leadership in the global energy and chemicals landscape while positioning Yanbu as a premier integrated refining and petrochemical hub.”
The Yanbu Refinery, a flagship collaboration under Saudi Arabia’s Vision 2030 and China’s Belt and Road Initiative, is located in Yanbu Industrial City, Saudi Arabia. The Yanbu Refinery spans 5.2 million square meters and processes 430,000 barrels per day of Saudi heavy crude oil, producing high-quality refined products and value-added chemicals for global markets. As a pivotal energy hub in the Middle East, the refinery has driven Saudi Arabia’s industrial modernization and international engagement.
The expansion project marks a new chapter in the partnership, combining technological innovation and industrial chain optimization to upgrade traditional energy cooperation models and explore sustainable development pathways.
The expansion project will integrate new ethylene, aromatics, and polyolefin units with existing infrastructure, elevating the complex’s refining-petrochemical integration capabilities and expanding production of high-performance materials. It will also incorporate advanced technologies and green innovations to support Saudi Arabia’s economic diversification and decarbonization goals.
Source: SINOPEC
