Sinopec and Aramco Sign Venture Framework Agreement to Expand Yanbu Refinery

Collaboration Aims to Build a World-Class Integrated Refining and Petrochemical Complex

YANBU INDUSTRIAL CITY,Saudi Arabia,April 10, 2025/PRNewswire/ -- On the 10th anniversary of the establishment of the Yanbu Refinery joint venture, China Petroleum& Chemical Corporation ("Sinopec,"HKG:0386) and Saudi Arabian Oil Company ("Aramco") signed a venture framework agreement ("VFA") to advance the Yanbu Refinery Expansion Project.

The project will leverage existing facilities to construct new units, including a large-scale mixed feed steam cracker of 1.8 million metric tons per year ethylene plant, a 1.5 million ton per year aromatics plant with associated downstream polyolefin units, enhancing integrated refining and petrochemical synergies and fostering an innovative, full-industry-chain ecosystem. Upon completion, the expansion will significantly boost production capacity for high-end petrochemical products, supportSaudi Arabia'sindustrial diversification strategy, and meet growing global market demand.

"The Yanbu Refinery stands as a testament to the strong friendship betweenChinaandSaudi Arabia, delivering robust economic benefits and advancing the petrochemical industry's modernization,"commentedZhao Dong,Sinopec Group President."This expansion will unlock greater synergies between Sinopec and Aramco, creating a world-leading integrated refining and petrochemical enterprise with global competitiveness. Together, we will contribute to a low-carbon energy transition."

Aramco President& CEOAmin H. Nasseremphasized, "The Yanbu expansion agreement deepens Aramco's strategic partnership with Sinopec. By prioritizing product innovation and diversification, we aim to reinforceSaudi Arabia'sleadership in the global energy and chemicals landscape while positioning Yanbu as a premier integrated refining and petrochemical hub."

The Yanbu Refinery, a flagship collaboration underSaudi Arabia'sVision 2030 andChina'sBelt and Road Initiative, is located in Yanbu Industrial City, Saudi Arabia. The Yanbu Refinery spans 5.2 million square meters and processes 430,000 barrels per day of Saudi heavy crude oil, producing high-quality refined products and value-added chemicals for global markets. As a pivotal energy hub in theMiddle East, the refinery has drivenSaudi Arabia'sindustrial modernization and international engagement.

The expansion project marks a new chapter in the partnership, combining technological innovation and industrial chain optimization to upgrade traditional energy cooperation models and explore sustainable development pathways.

The expansion project will integrate new ethylene, aromatics, and polyolefin units with existing infrastructure, elevating the complex's refining-petrochemical integration capabilities and expanding production of high-performance materials. It will also incorporate advanced technologies and green innovations to supportSaudi Arabia'seconomic diversification and decarbonization goals.

SOURCE SINOPEC