#Saudi Arabia #Aramco #Sinopec #Yanbu

Sinopec and Aramco Forge New Path in Petrochemical Industry

On April 10, 2025, China Petroleum & Chemical Corporation (Sinopec) and Saudi Arabian Oil Company (Aramco) celebrated the 10th anniversary of their joint venture, the Yanbu Refinery, by signing a framework agreement aimed at significantly expanding the facility. This strategic partnership seeks to establish a world-class integrated refining and petrochemical complex in Yanbu Industrial City, specifically designed to meet the demands of a growing global market.

The expansion will leverage existing infrastructure while introducing new, cutting-edge units. Among these are a large-scale mixed-feed steam cracker, an ethylene plant with an annual capacity of 1.8 million tons, and an aromatics facility capable of producing 1.5 million tons per year. Additionally, downstream polyolefin units will enhance the production capabilities of the complex. This initiative is not just about increasing output; it aims to create synergies between refining and petrochemicals, fostering an innovative ecosystem across the entire industrial chain.

"The Yanbu Refinery embodies the strong friendship between China and Saudi Arabia, yielding substantial economic benefits and propelling the modernization of the petrochemical industry," said Zhao Dong, President of Sinopec Group, highlighting the importance of this expansion in terms of bilateral relations and technological advancement. He added, "This expansion will enhance synergies between Sinopec and Aramco, creating a leading integrated refining and petrochemical enterprise that is competitive on a global scale. Together, we will contribute to the transition towards low-carbon energy."

Amin H. Nasser, CEO of Aramco, echoed these sentiments by stating, "The Yanbu expansion agreement reinforces the strategic partnership between Aramco and Sinopec. By prioritizing innovation and product diversification, we aim to strengthen Saudi Arabia's leadership in the global energy and chemicals landscape, positioning Yanbu as a premier integrated refining and petrochemicals hub."

Situated in Yanbu, Saudi Arabia, the refinery spans 5.2 million square meters and processes 430,000 barrels of Saudi heavy crude oil daily. It produces high-quality refined products and value-added chemicals intended for international markets. This facility is pivotal to Saudi Arabia's energy framework, driving industrial modernization and its international engagement.

The expansion project signifies a new chapter in Sinopec and Aramco's partnership, merging technological innovation with efficient supply chain models to redefine traditional energy cooperation frameworks and explore sustainable development pathways. The integration of new ethylene, aromatics, and polyolefin units will bolster refining-petrochemical capabilities, enhancing the production of high-performance materials. Furthermore, it will incorporate advanced technologies and green innovations, aligning with Saudi Arabia's economic diversification and decarbonization objectives.

In summary, this ambitious expansion is set to deliver unprecedented benefits not only to both companies involved but also to the global petrochemical market. As Sinopec and Aramco continue to pioneer advancements within the energy sector, they reaffirm their commitment to sustainable practices and technological excellence, positioning themselves at the forefront of industry innovation on a worldwide scale.