Sinopec and Saudi Aramco Advance Expansion of Yanbu Refinery to Enhance High-End Petrochemical Capacity

Sinopec and Saudi Aramco recently signed the "Yanbu Refinery Expansion Project Cooperation Framework Agreement" in Dammam, Saudi Arabia, aiming to enhance the capacity of high-end petrochemical products through expansion.

The expansion project will utilize the refinery's existing facilities to build new ethylene units with an annual capacity of 1.8 million mt, aromatics units with an annual capacity of 1.5 million mt, and supporting downstream polyolefin units, maximizing the synergistic effects of integrated refining and chemical production. Upon completion, the project will significantly improve the refinery's production capacity for high-end petrochemical products.

The Yanbu Refinery, officially known as Saudi Aramco Sinopec Refining Company (SASREF), is a joint venture established by Sinopec and Saudi Aramco, with Saudi Aramco holding a 62.5% stake. It officially commenced operations in January 2016. This project is an important practice of China's "Belt and Road" initiative and Saudi Arabia's "Vision 2030."

The refinery is located in Yanbu Industrial City, Saudi Arabia, processing 430,000 barrels per day of Saudi heavy crude oil to produce refined oil and high-value-added products for the global market.

The signing ceremony was witnessed by Zhao Dong, General Manager of Sinopec Group, and Amin Nasser, President and CEO of Saudi Aramco.

Saudi Aramco is Saudi Arabia's state-owned oil company and one of the world's largest integrated energy and chemical companies. In recent years, Saudi Aramco has continuously deepened its cooperation with China.

In 2022, the company signed an agreement with Sinopec to build an integrated refining and chemical project in Gulei, Fujian. In 2024, the second phase of the Fujian Gulei Refining and Chemical Integration Project, with a total investment of 71.1 billion yuan, officially commenced. The project plans to construct over 30 major units, including an annual crude oil processing capacity of 16 million mt, ethylene production capacity of 1.5 million mt, and aromatics production capacity of 2 million mt.