Aramco signs VFA for major petrochemical expansion at Yasref

Saudi Aramco, China Petroleum & Chemical Corporation (Sinopec) and Yanbu Aramco Sinopec Refining Company (Yasref) signed a venture framework agreement (VFA) intended to pave the way for a major petrochemical expansion at Yasref in Yanbu.

In an emailed statement to Argaam today, April 9, Saudi Aramco said that the VFA aims to advance engineering studies for the development of a fully-integrated petrochemical complex at Yasref, a joint venture owned by Aramco (62.5%) and Sinopec (37.5%).

The project aims to maximize operational synergies and create additional value through introducing a state-of-the-art petrochemical unit, a large-scale mixed feed steam cracker with a 1.8 million 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 the growing demand for high-quality petrochemical products.

Yasref is one of a number of strategic partnerships between Aramco and Sinopec, which also include Sinopec Senmei (Fujian) Petroleum Company (SSPC); Sinopec SABIC Tianjin Petrochemical Co. (SSTPC); Fujian Refining & Petrochemical Company (FREP); and a new integrated refining and petrochemical complex being developed in Fujian Province, China. Through such projects, the two groups aim to strengthen energy security, fuel industrial innovation, foster long-term co-operation, and contribute to the global economy.

Amin Nasser, Aramco President & CEO, said 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,” he added.

Mohammed Al Qahtani, Aramco Downstream President, said: “Our strong relationship with Sinopec continues to build momentum. The planned Yasref expansion aligns with our downstream strategy to unlock the full potential of our resources, including converting up to four million barrels per day of crude oil into petrochemicals by 2030.”

Through its partnership with Sinopec, Aramco seeks to advance cutting-edge refining and petrochemical capabilities to deliver high-value products, create new opportunities, drive industrial innovation, and enable economic transformation. This highlights the company’s strategic, long-term partnership with Sinopec and it is fitting that the announcement of this project coincides with Yasref’s 10th anniversary.