China Petroleum & Chemical Corporation (Sinopec), Aramco, and Yanbu Aramco Sinopec Refining Company (YASREF) signed a Venture Framework Agreement on April 8, 2025. The agreement is aimed at expanding the petrochemical capabilities of YASREF, located in Yanbu.
The agreement, which was made on the occasion of YASREF's 10th anniversary, will initiate engineering studies for a new petrochemical complex. This complex will include a 1.8 million tons per annum (MTA) ethylene cracker, a 1.5 MTA aromatics unit, and a downstream polyolefin unit, all integrated into YASREF. The joint venture is jointly owned by Sinopec and Aramco, with shares of 37.5% and 62.5%, respectively.
Sinopec's President, Zhao Dong, commented, "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. The YASREF expansion project represents a significant milestone in our bilateral partnership, ushering in a new phase of deeper and more far-reaching collaboration. We expect the YASREF expansion project to unlock new dimensions of collaborative potential as we navigate the energy transition. Sinopec and Aramco are poised to establish a world-class, integrated refining and petrochemical complex, distinguished by comprehensive competitive advantages. Aiming to redefine traditional energy cooperation models, and expand new frontiers for more sustainable development."
Aramco's President and CEO, Amin H. Nasser, added, "The VFA further deepens the strategic partnership between Aramco and Sinopec. The YASREF expansion project solidifies our commitment to the innovation and diversification of products. We look forward to strengthening collaboration with Sinopec to help YASREF become a world-class, fully integrated refining and petrochemical complex, consolidating Saudi Arabia’s leading role in energy and chemicals."
YASREF is one of several partnerships between Sinopec and Aramco. Other collaborations include Sinopec Senmei (Fujian) Petroleum Company (SSPC), Sinopec SABIC Tianjin Petrochemical Co. (SSTPC), Fujian Refining & Petrochemical Company (FREP), and a new complex in Fujian Province, China. Through these partnerships, both entities aim to reinforce energy security, drive industrial innovation, and promote long-term cooperation contributing to the global economy.