RIYADH, April 9 (Xinhua) -- China's Sinopec and Saudi Aramco have signed a framework agreement to expand their Yanbu refinery joint venture, aiming to meet the growing global demand for high-end petrochemical products.
The agreement, signed on Tuesday in the Saudi city of Dhahran, introduces the Yanbu Refinery Expansion Project, which includes a 1.8 million tonne-per-year ethylene plant and a 1.5 million tonne-per-year aromatics unit. The project will leverage existing infrastructure to deepen integration between refining and petrochemical operations, the companies said in a joint statement.
The planned upgrades are expected to support Saudi Arabia's push for industrial diversification and enhance the refinery's role as a global supplier of specialty chemicals and polymers.
Sinopec President Zhao Dong and Saudi Aramco CEO Amin Nasser attended the signing ceremony.
Commissioned in 2014, the Yanbu refinery is a joint venture located in Yanbu Industrial City on Saudi Arabia's Red Sea coast. It processes 430,000 barrels per day of heavy crude and supplies global markets with refined fuels and petrochemicals. The 5.2 million-square-metre facility is a key project under China's Belt and Road Initiative and Saudi Arabia's Vision 2030 economic reform plan.
Zhao described the Yanbu refinery as a flagship project of China-Saudi energy cooperation, stating it has strongly supported Saudi Arabia's local economy since coming online while also helping to upgrade the petrochemical industry. He indicated that this collaborative expansion project represents a move towards deeper and broader cooperation between the two entities.
Zhao further stated that both sides intend to maximize the potential of their partnership, reshape conventional energy cooperation models, explore new avenues for sustainable development, and jointly establish a leading integrated refining and petrochemical enterprise with comprehensive competitive advantages to support the global energy transition.
Nasser said the expansion would deepen Aramco's strategic partnership with Sinopec and reinforce the company's commitment to product innovation and diversification.
He added that the Saudi oil giant is looking forward to strengthening its cooperation with Sinopec to establish the Yanbu refinery as a premier integrated refining and petrochemicals enterprise and to enhance Saudi Arabia's standing as a global leader in the energy and chemicals sectors.
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