Sinopec, Aramco and Yasref sign agreement on a major petrochemical project

China Petroleum and Chemical Corp (Sinopec) signed a Venture Framework Agreement (VFA) with Aramco and Yanbu Aramco Sinopec Refining Company (Yasref) on Tuesday for a major petrochemical expansion at Yasref in Yanbuon in the west coast of Saudi Arabia.

The agreement seeks to advance engineering studies for the development of a fully-integrated petrochemical complex at Yasref, a joint venture owned by Aramco (62.5 percent) and Sinopec (37.5 percent).

The project aims to maximize operational synergies and create additional value through introducing a petrochemical unit, a large-scale mixed feed steam cracker with a 1.8 million metric tons per year capacity, and a 1.5 million tons per year aromatics complex with associated downstream derivatives integrated into the existing Yasref complex.

This is expected to enhance Yasref's ability to meet growing demand for high-quality petrochemical products.

"The Yasref Venture Framework Agreement further deepens and elevates our strategic partnership with Sinopec," said Amin H. Nasser, Aramco President & CEO.

Yasref, a flagship joint venture symbolizing China-Saudi energy cooperation, has not only served as a key driver for Saudi Arabia's local economic growth but also actively advanced petrochemical industry upgrades, said Zhao Dong, Sinopec President.

"The Yasref expansion project represents a significant milestone in our bilateral partnership, ushering in a new phase of deeper and more far-reaching collaboration," he said.

"We expect the Yasref expansion project to unlock new dimensions of collaborative potential as we navigate the energy transition."