Saudi Aramco, Sinopec, and Yanbu Aramco Sinopec Refining Company (Yasref) have signed a Venture Framework Agreement (VFA) to explore a significant petrochemical expansion in Yanbu, on the western coast of Saudi Arabia. The signing coincides with Yasref’s 10th anniversary and reflects a deepening of the long-standing partnership between the energy giants.

The VFA aims to advance detailed engineering studies for the development of a fully integrated petrochemical complex within the existing Yasref facility. Yasref is a joint venture between Aramco, which holds a 62.5% stake, and China Petroleum & Chemical Corporation (Sinopec), which owns 37.5%.

The planned expansion is expected to include a large-scale, mixed-feed steam cracker with a production capacity of 1.8 million metric tons per year, as well as a 1.5 million metric tons per year aromatics complex. The project will also feature associated downstream derivative units, all of which will be integrated into the current Yasref complex. This integration is designed to create operational efficiencies, enhance value creation, and meet rising global demand for high-performance petrochemical products.

Aramco President and CEO Amin H. Nasser described the agreement as a strategic milestone. “The Yasref Venture Framework Agreement further strengthens our partnership with Sinopec,” Nasser said. “The planned expansion aligns with our commitment to product innovation and diversification. As we look ahead, we remain focused on developing Yasref into a global leader in refining and petrochemicals while reinforcing Saudi Arabia’s role as a major player in the energy and chemicals sector.”

Mohammed Y. Al Qahtani, Aramco’s downstream president, emphasized that the initiative supports Aramco’s strategy to convert up to 4 million barrels per day of crude oil into petrochemicals by 2030. “This expansion aligns with our downstream ambitions and our broader goals of industrial transformation and economic diversification,” Al Qahtani said. “In partnership with Sinopec, we aim to deploy cutting-edge technologies to deliver high-value products and support sustainable development.”

Sinopec President Zhao Dong called the project a new chapter in the China-Saudi energy alliance. “Yasref is a model of international collaboration. Its expansion marks a significant milestone in our partnership, driving forward shared goals in energy innovation and economic growth,” Dong said. “We believe this project will create new benchmarks for refining and petrochemical integration, and position both companies at the forefront of the global energy transition.”

Yasref is one of several collaborations between Aramco and Sinopec. Their partnership also includes ventures such as the Sinopec Senmei (Fujian) Petroleum Company, the Sinopec SABIC Tianjin Petrochemical Company, the Fujian Refining & Petrochemical Company, and an upcoming integrated complex in China’s Fujian Province.

Through these joint efforts, both companies aim to strengthen energy security, foster industrial innovation, and contribute to long-term, sustainable global economic growth.