Aramco, Sinopec and Yasref sign Venture Framework Agreement for planned petrochemical expansion

In a significant move to strengthen energy ties and drive industrial growth, Aramco, Sinopec, and their joint venture Yanbu Aramco Sinopec Refining Company (Yasref) have signed a landmark Venture Framework Agreement (VFA). This strategic agreement aims to develop a world-class, fully-integrated petrochemical complex at Yasref’s refinery in Yanbu, located on Saudi Arabia’s western coast.

Celebrating a Decade of Yasref with Visionary Expansion

Coinciding with Yasref’s 10th anniversary, the agreement lays the foundation for a large-scale petrochemical expansion that promises to boost production capacity, diversify output, and enhance operational efficiency. The venture is jointly owned by Aramco (62.5%) and Sinopec (37.5%).

Under the agreement, detailed engineering studies are now underway for a state-of-the-art petrochemical complex that will be seamlessly integrated into Yasref’s existing infrastructure. The proposed development includes a high-capacity mixed-feed steam cracker capable of producing 1.8 million tons of products annually, alongside a 1.5 million tons-per-year aromatics complex with downstream derivative units. These additions are set to elevate Yasref’s capability to meet the growing global demand for advanced petrochemical products.

Strategic Leadership and Commitment to Innovation

The signing ceremony brought together top executives from both companies. Standing from left to right were: Yasref Director Lian Mingxiang, Sinopec Group Assistant President Qin Du, Sinopec Group President Zhao Dong, Aramco President & CEO Amin H. Nasser, Aramco Downstream President Mohammed Y. Al Qahtani, and Aramco Executive Vice President and Yasref Chairman Yasser M. Mufti. Seated were: Sinopec Overseas Investment Holding President Zou Wenzhi, Yasref President & CEO Saad Bin Matlig, and Aramco VP of Liquid-to-Chemical Program Fahad Alsahali.

Amin H. Nasser, President & CEO of Aramco, emphasized the importance of this partnership:
“This agreement marks a new chapter in our relationship with Sinopec. The Yasref expansion aligns perfectly with our vision for greater product innovation and diversification. As we work to transform Yasref into a global hub for refining and petrochemicals, we are proud to reinforce Saudi Arabia’s role as a world leader in energy and chemicals.”

Transforming Resources for the Future

Mohammed Y. Al Qahtani, Aramco’s Downstream President, highlighted the broader goals of the collaboration:
“Our partnership with Sinopec continues to grow stronger. The expansion of Yasref directly supports our downstream strategy, which includes converting up to 4 million barrels of crude oil per day into petrochemicals by 2030. Together with Sinopec, we aim to push the boundaries of refining and petrochemical technology, generate high-value products, and create new economic opportunities across the region.”

Strengthening China-Saudi Energy Ties

Sinopec President Zhao Dong praised the joint venture as a flagship model for China-Saudi cooperation:
“Yasref is more than a refinery—it’s a symbol of successful partnership and a catalyst for economic growth. This expansion project opens a new chapter in our collaboration, enabling us to explore innovative pathways in the energy transition. We are committed to building a world-class petrochemical facility that reflects our shared ambition for sustainable development and industrial excellence.”

Expanding a Long-Standing Partnership

The Yasref project is one of several strategic collaborations between Aramco and Sinopec. Other notable ventures include:

• Sinopec Senmei (Fujian) Petroleum Company (SSPC)
• Sinopec SABIC Tianjin Petrochemical Co. (SSTPC)
• Fujian Refining & Petrochemical Company (FREP)
• A new integrated refining and petrochemical complex under development in Fujian Province, China

Together, these projects reflect a deep, long-term partnership focused on enhancing energy security, driving innovation, and contributing to global economic stability.

Looking Ahead

As Aramco and Sinopec continue to align their visions, the Yasref expansion stands as a testament to their shared commitment to shaping the future of petrochemicals. By combining cutting-edge technology, operational excellence, and strategic foresight, this project is poised to set a new benchmark in the global refining and petrochemical industry.