Aramco and Sinopec move ahead with petrochemical expansion

• Aramco, Sinopec and Yasref tie-up
• Intergrated into existing facility
• 1.8 mtpa capacity

Saudi Aramco says it has signed an agreement to move forward with expanding a petrochemical complex on the west coast of Saudi Arabia.

The oil major, which trades on the Saudi stock exchange, has signed a venture framework agreement with China Petroleum & Chemical Corporation (Sinopec) and Yanbu Aramco Sinopec Refining Company (Yasref) to carry out engineering studies on the project’s expansion.

The petrochemical complex at Yasref is 62.5 percent owned by Aramco and 37.5 percent by Sinopec, Aramco said in a statement on its website.

The project will have a petrochemical unit, a large-scale mixed feed steam cracker with a 1.8 million tonnes per year (tpa) capacity, and a 1.5 million tpa aromatics complex, which will be integrated into the existing Yasref complex. 

This will allow Yasref to meet growing demand for petrochemical products.

Aramco downstream president Mohammed Al Qahtani said the proposed expansion works will allow converting up to 4 million barrels per day of crude oil into petrochemicals by 2030.

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Other ventures between Aramco and Sinopec include Sinopec Senmei (Fujian) Petroleum Company, Sinopec Sabic Tianjin Petrochemical Company, Fujian Refining & Petrochemical Company and a new integrated refining and petrochemical complex being developed in Fujian province, China. 

In July, Aramco and the Public Investment Fund doubled their investment in a steel-plate joint venture with a Chinese company to $500 million.

China has been the biggest international investor in Saudi Arabia, at nearly $17 billion, reflecting Saudi Arabia’s pivot to the East since the visit of President Xi Jinping to Riyadh in December 2022.