Aramco And Sinopec Finalise Venture Framework Agreement For Yasref Petrochemical Expansion

Saudi Aramco, Sinopec, and Yasref have signed a Venture Framework Agreement (VFA) to expand the petrochemical operations at Yasref in Yanbu, Saudi Arabia. This agreement marks Yasref's 10th anniversary and aims to enhance engineering studies for a fully integrated petrochemical complex. The joint venture is owned by Aramco with 62.5% and Sinopec with 37.5% shares.

The project plans to introduce advanced facilities, including a mixed feed steam cracker with a capacity of 1.8 million tons annually and an aromatics complex producing 1.5 million tons per year. These additions will integrate into the existing Yasref setup, aiming to meet the rising demand for high-quality petrochemical products.

Amin H. Nasser, President and CEO of Saudi Aramco, stated, "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."

Aramco Downstream President Mohammed Y. Al Qahtani highlighted the alignment of this expansion with their downstream strategy. He said it aims to convert up to four million barrels of crude oil daily into petrochemicals by 2030. This collaboration with Sinopec seeks to advance refining capabilities, deliver high-value products, create new opportunities, drive industrial innovation, and enable economic transformation.

Sinopec President Zhao Dong remarked on the significance of Yasref as a flagship joint venture symbolizing China-Saudi energy cooperation. He noted its role in driving local economic growth in Saudi Arabia while advancing petrochemical industry upgrades. "We expect the Yasref expansion project to unlock new dimensions of collaborative potential as we navigate the energy transition," he added.

Strengthening Global Partnerships

The release also highlighted other strategic partnerships between Aramco and Sinopec. These include ventures like Sinopec Senmei (Fujian) Petroleum Company (SSPC), Sinopec SABIC Tianjin Petrochemical Co. (SSTPC), Fujian Refining & Petrochemical Company (FREP), and an upcoming integrated refining complex in Fujian Province, China.

These collaborations aim to bolster energy security, fuel industrial innovation, foster long-term cooperation, and contribute significantly to the global economy. Through these efforts, both companies are poised to establish a world-class refining and petrochemical complex distinguished by comprehensive competitive advantages.

The planned expansion at Yasref is expected not only to redefine traditional energy cooperation models but also expand new frontiers for sustainable development. This move underscores the strategic long-term partnership between Aramco and Sinopec as they work together towards more sustainable energy solutions.

With inputs from SPA