Marking the 10th anniversary of the launch of their joint Yanbu Aramco Sinopec Refining Company (Yasref), Sinopec and Saudi Aramco signed a Framework Cooperation Agreement for Yasref refinery expansion. Leveraging existing refining facilities, the two parties plan to build new production units, including an 1.8-million-ton-per-annum ethylene plant, a 1.5-million-ton-per-annum aromatics unit, and supporting downstream polyolefin facilities, to maximize the synergy of integrated refining and petrochemical operations. Upon commissioning, the expansion will drastically boost the output capacity of high-end petrochemical products, facilitate Saudi Arabia’s industrial diversification, and meet surging global market demands.
As a world-class refining joint venture co-built by Sinopec and Saudi Aramco, Yasref stands as a landmark project aligning China’s Belt and Road Initiative with Saudi Arabia’s Vision 2030. Located in Yanbu Industrial City on Saudi Arabia’s Red Sea coast, the flagship refinery covers a total area of 5.2 million square meters. Processing 430,000 barrels of Saudi heavy crude oil per day, Yasref produces refined oil products and high-value-added chemicals supplied to markets worldwide.
Zhao Dong, President of Sinopec Group, remarked that Yasref has served as an exemplary model for China-Saudi energy cooperation. Since its commissioning, the landmark joint venture has fueled Saudi Arabia’s local economic growth and driven the upgrading of the global petrochemical industry. The newly signed expansion deal signals deeper and broader bilateral cooperation between the two energy giants.
“We will further unlock cooperation potential, reshape the traditional energy partnership, and explore new pathways for sustainable development. Both sides aim to build a world-class integrated refining and petrochemical enterprise with robust comprehensive competitiveness, contributing to global energy transition,” Zhao added.
Amin Nasser, President and Chief Executive Officer of Saudi Aramco, stated that the signing of the Yasref expansion framework agreement further deepens and elevates the long-standing strategic partnership between Saudi Aramco and Sinopec.
Saudi Aramco, Saudi Arabia’s national oil company, ranks among the world’s largest integrated energy and chemical enterprises. During the recent China Development Forum, Amin Nasser emphasized that China occupies a pivotal position in Saudi Aramco’s global strategy, and the energy giant remains bullish on China’s promising and expanding market prospects as a long-term investor.
“China is one of our key investment destinations. Our ongoing investment projects span Fujian, Liaoning, Zhejiang and Tianjin. I stress ongoing because we are actively pursuing more cooperation opportunities covering energy, chemicals and technology sectors,” Nasser noted.
According to Nasser, Saudi Aramco has invested in multiple downstream projects in China to safeguard China’s energy and chemical raw material security, while supporting growing Chinese investment in Saudi energy sectors. He highlighted Yasref, the offshore refining joint venture on Saudi Arabia’s western coast, as one of the world’s top-tier refineries, hailed as a rising energy star of Saudi Arabia. Chinese investment in Saudi Arabia also includes Baosteel’s world-first green and low-carbon heavy plate manufacturing plant, plus a potential equity acquisition deal of a Saudi Aramco refinery by Rongsheng Petrochemical.
As China-Saudi bilateral relations enter a golden era, Saudi Aramco has accelerated its industrial layout in China since 2023. The company has ramped up massive capital investment to acquire stakes in multiple large-scale private refining and petrochemical projects across China, strengthening long-term energy and industrial ties between the two nations.
