Aramco, Sinopec Plan Petrochemical Complex at Saudi Refinery Site

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Aramco, Sinopec Plan Petrochemical Complex at Saudi Refinery Site

Saudi Arabian Oil Co. (Aramco) and China Petroleum & Chemical Corp. (Sinopec) have signed a deal for the potential expansion of their Yanbu refinery to include petrochemical facilities. The “venture framework agreement”, signed in the 10th anniversary of Yanbu Aramco Sinopec Refining Co. (Yasref), “seeks to advance engineering studies for the development of a fully-integrated petrochemical […]

Saudi Arabian Oil Co. (Aramco) and China Petroleum & Chemical Corp. (Sinopec) have signed a deal for the potential expansion of their Yanbu refinery to include petrochemical facilities.

The “venture framework agreement”, signed in the 10th anniversary of Yanbu Aramco Sinopec Refining Co. (Yasref), “seeks to advance engineering studies for the development of a fully-integrated petrochemical complex”, the Saudi oil giant said in an online statement.

Yanbu Aramco Sinopec Refining, 62.5 percent owned by Aramco and 37.5 percent by Sinopec, manages the refinery in the Yanbu Industrial City on the west coast of Saudi Arabia. Spanning about 5.2 million square meters (55.97 million square feet), the refinery processes 400,000 barrels a day of Arabian heavy crude oil, according to Yasref.

The potential expansion involves the construction of a mixed feed steam cracker with a capacity of 1.8 million metric tons per annum (MMtpa) and a 1.5-MMtpa aromatics complex with associated downstream derivatives.

“The planned Yasref expansion aligns with our downstream strategy to unlock the full potential of our resources, including converting up to four million barrels per day of crude oil into petrochemicals by 2030”, said Aramco president for downstream Mohammed Y Al Qahtani.

“The planned expansion project solidifies our commitment to product innovation and diversification”, Aramco president and chief executive Amin H. Nasser said. “As we look forward to strengthening our collaboration with Sinopec in making Yasref a leading refining and petrochemicals joint venture, we aim to contribute to growing Saudi Arabia’s position as a global leader in energy and chemicals”.

Zhao Dong, president of China’s state-owned Sinopec, said, “We expect the Yasref expansion project to unlock new dimensions of collaborative potential as we navigate the energy transition”.

Besides Yasref, Aramco and Sinopec are also partners in Fujian Refining & Petrochemical Co., Sinopec SABIC Tianjin Petrochemical Co., Sinopec Senmei (Fujian) Petroleum Co. and a new integrated refining and petrochemical complex under construction in the Chinese province of Fujian.

Aramco, Sinopec and Fujian Petrochemical Co. Ltd. (FPCL) broke ground last November for the complex. The complex is planned to have a petroleum refinery with a capacity of 16 MMtpa or 320,000 barrels a day, a 1.5-MMtpa ethylene unit, a plant to produce two million tons of paraxylene and derivatives, and a 300,000-metric ton petroleum terminal. The partners expect to reach full operation by the end of 2030.

FPCL, a 50:50 venture between Sinopec and Fujian Petrochemical Industrial Group Co. Ltd., owns a 50 percent stake in the complex. Aramco and Sinopec each hold 25 percent.

“We will supply in excess of one million barrels per day of our crude oil to these high chemical conversion assets in China, reinforcing Aramco’s role as a reliable and long-term partner in China’s development”, Al Qahtani said in a statement November 18, 2024.

“This also advances our liquids-to-chemicals strategy, through which we intend to direct more of our crude towards helping meet rising global petrochemicals demand”.

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