Saudi Aramco has signed a venture framework agreement with China Petroleum & Chemical Corporation (Sinopec) and Yanbu Aramco Sinopec Refining Company (Yasref) for a potential petrochemicals expansion of the Yasref refinery complex, located in Yanbu on the west coast of Saudi Arabia.

Aramco and Sinopec intend to establish a giant petrochemicals facility that will feature a large-scale mixed-feed steam cracker with a capacity of 1.8 million tonnes a year (t/y) and a 1.5 million-t/y aromatics complex, along with other associated downstream derivatives, integrated into the existing Yasref complex.

The Yasref refinery has a crude oil refining capacity of 400,000 barrels a day (b/d). Aramco owns the majority 62.5% stake in Yasref, with the other 37.5% stake held by Sinopec.

The signing of the Yasref petrochemicals expansion agreement coincides with the 10th anniversary of the refining facility’s commissioning.

“The project aims to maximise operational synergies and create additional value through introducing a state-of-the-art petrochemical unit. This is expected to enhance Yasref’s ability to meet growing demand for high-quality petrochemical products,” Aramco said in a statement on 9 April.

Aramco added that it seeks to advance ongoing engineering studies for the Yasref petrochemicals expansion project.

Prior to their venture framework agreement, the partners signed an initial memorandum of understanding for joint investment in the Yasref petrochemicals expansion project during the Future Investment Initiative conference in Riyadh in October 2023.

MEED understands that the Yasref petrochemicals expansion project, which is also referred to as Yasref+, is part of Aramco’s mammoth $100bn liquids-to-chemicals programme.

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The central ambition of the strategic programme is to derive greater economic value from every barrel of crude produced in Saudi Arabia by converting 4 million b/d of Aramco’s oil production into high-value petrochemicals and chemicals feedstocks by 2030.

Aramco and its subsidiary, Saudi Basic Industries Corporation (Sabic), had been tasked with establishing 10-11 large mixed-feed crackers by 2030. These petrochemicals crackers, which included greenfield developments and expansions of existing facilities, were to be built both in Saudi Arabia and in overseas markets.

In March, MEED reported that Aramco was making progress with another major project as part of the liquids-to-chemicals programme. This project involves converting the Saudi Aramco Jubail Refinery Company (Sasref) refining complex in Jubail Industrial City into an integrated refinery and petrochemicals complex by adding a mixed-feed cracker.

Aramco’s liquids-to-chemicals programme consists of two other projects, progress on which is understood to be uncertain or laggard. Those projects are:

• Conversion of the Saudi Aramco Mobil Refinery Company (Samref) complex in Yanbu into an integrated refinery and petrochemicals complex by building a mixed-feed cracker
• Establishment of a crude oil-to-chemicals (COTC) complex in Ras Al-Khair in the kingdom’s Eastern Province. Sabic is a partner in the Ras Al-Khair COTC project.

In a presentation detailing Aramco’s financial performance and operational activities in 2024, president and CEO Amin Nasser stated that the company had achieved 45% of the target of the liquids-to-chemicals programme as of the end of last year. Also, 53% of Aramco’s crude oil production is utilised by the downstream sector.

This has been achieved through “greater capital efficiency with low-equity and a high-placement strategy”, Nasser said in the presentation on 4 March.

Moreover, large-scale petrochemicals projects undertaken by Aramco’s joint ventures with foreign partners in South Korea and Saudi Arabia, namely the Shaheen and Amiral developments, respectively, will significantly contribute to the liquids-to-chemicals target when they come online in 2026 and 2027.