#Saudi Arabia #Aramco #Sinopec #Yanbu Refinery #Yanbu

Sinopec and Aramco Venture into Joint Refinery Expansion

On April 10, 2025, in celebration of the tenth anniversary of their joint venture at the Yanbu Refinery, the China Petroleum & Chemical Corporation (Sinopec) and the Saudi Arabian Oil Company (Aramco) came together to sign a significant framework agreement. This agreement aims to push forward the expansion project for the Yanbu Refinery, which is located in the industrial city of Yanbu, Saudi Arabia.

The collaboration is set to create a state-of-the-art integrated refinery and petrochemical complex. This integrated project will leverage existing facilities while constructing new units, including a massive ethylene plant capable of processing 1.8 million tons annually and an aromatics plant with a capacity of 1.5 million tons a year, along with associated downstream polyolefins units. The goal of these enhancements is to improve synergy between refinery and petrochemical operations and cultivate an innovative ecosystem that spans the entire industry chain.

Once completed, the expansion is expected to substantially raise production capacity for high-quality petrochemical products, backing Saudi Arabia's industrial diversification strategy and meeting the growing demands of the global market.

Zhao Dong, President of Sinopec Group, remarked, “The Yanbu Refinery symbolizes the robust friendship between China and Saudi Arabia, bringing significant economic benefits and fostering the modernization of the petrochemical industry. This expansion will enhance synergies between Sinopec and Aramco, creating a world-leading, integrated refinery and petrochemical entity that boasts global competitiveness. Together, we will contribute to a low-carbon energy transition.”

Amin H. Nasser, President and CEO of Aramco, further emphasized, “The Yanbu expansion agreement deepens Aramco's strategic partnership with Sinopec. By prioritizing product innovation and diversification, we aim to reinforce Saudi Arabia's leadership in the global energy and chemical landscape, positioning Yanbu as a premier integrated refinery and petrochemicals hub.”

The Yanbu Refinery is a flagship project under Saudi Arabia's Vision 2030 and aligns with China's Belt and Road Initiative. Covering an area of 5.2 million square meters, this refinery has a processing capacity of approximately 430,000 barrels of Saudi heavy crude oil per day, producing high-quality refined products and high-value chemicals for global markets. The facility plays a crucial role in advancing Saudi Arabia's industrial modernization and its international commitments.

The expansion project marks a new chapter in the Sinopec-Aramco partnership, focusing on technological innovation and optimizing the industrial chain to enhance traditional energy cooperation models and explore sustainable development paths. Under this expansion initiative, new ethylene, aromatics, and polyolefin plants will be integrated into the existing infrastructure, significantly augmenting the refinery's petrochemical integration capabilities and expanding the production of high-performance materials. The project will incorporate advanced technologies and green innovations to support Saudi Arabia's economic diversification and decarbonization objectives.

In summary, the collaborative efforts between Sinopec and Aramco represent a significant leap forward in the refinery industry's landscape, promising innovations that will drive both economic growth and sustainable energy practices in the coming years.