This development aims to foster an innovative, full-industry-chain ecosystem and meet growing global market demand.
The expansion will add a 1.8 million tonnes per annum ethylene plant and a 1.5 million tonnes per annum aromatics plant, along with downstream polyolefin units. These additions will build on existing infrastructure to increase production of high-value petrochemicals, supporting industrial growth and market needs.
Amin H. Nasser, Aramco’s president and CEO, stated: “The Yanbu expansion agreement deepens Aramco’s strategic partnership with Sinopec. By prioritising product innovation and diversification, we aim to reinforce Saudi Arabia’s leadership in the global energy and chemicals landscape while positioning Yanbu as a premier integrated refining and petrochemical hub.”
The Yanbu Refinery currently processes 430,000 barrels per day of heavy crude oil, producing refined products and chemicals for global markets. The expansion will significantly increase its capacity to deliver advanced petrochemicals, fostering innovation and efficiency in the industry.
Sinopec Group president Zhao Dong said: “The Yanbu Refinery stands as a testament to the strong friendship between China and Saudi Arabia, delivering robust economic benefits and advancing the petrochemical industry’s modernisation.
“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.”
The project emphasizes technological advancements and sustainability, incorporating green innovations to align with goals for economic diversification and reduced carbon emissions. By optimizing the industrial chain, the expansion aims to create a modern, efficient ecosystem for refining and petrochemical production.
The new units will enhance the refinery’s integration, enabling it to produce a wider range of high-quality products. This development reflects a commitment to upgrading traditional energy models while exploring sustainable pathways for long-term growth.
In a separate agreement, Aramco’s subsidiary signed a 20-year contract with NextDecade for 1.2 million tonnes per annum of liquefied natural gas from the Rio Grande LNG facility in Texas, USA, pending a final investment decision for the facility’s Train 4.
The Yanbu Refinery expansion strengthens collaboration between Sinopec and Aramco, fostering innovation and supporting global market demands while advancing sustainable industrial practices.
