On April 8th, Sinopec and Saudi Aramco signed a framework agreement for the expansion of the Yanbu Refinery, marking a significant milestone on the 10th anniversary of their joint venture at the facility. The expansion will introduce a new ethylene production unit with a capacity of 1.8 million tons per year, alongside a 1.5 million tons per year aromatics unit and accompanying downstream polyethylene production facilities.

Sinopec's CEO, Zhao Dong, emphasized that the Yanbu Refinery has become a model of China-Saudi energy collaboration since its inception. The plant has significantly contributed to the local economy and helped drive advancements in the petrochemical industry. This latest partnership deepens the cooperation between Sinopec and Saudi Aramco, pushing it to a new level and expanding into broader fields. Zhao also highlighted the importance of this project in reshaping traditional energy cooperation, aiming to foster sustainable development and build a world-class refining and petrochemical enterprise with integrated competitive advantages that will contribute to the global energy transition.

is a cornerstone project of China-Saudi energy cooperation and an embodiment of both China's Belt and Road Initiative and Saudi Arabia's Vision 2030. Located in Yanbu Industrial City on the Red Sea coast, the refinery spans approximately 5.2 million square meters and processes 430,000 barrels of Saudi heavy crude oil daily. It produces a range of refined products and high-value petrochemical products, supplying markets worldwide.

The new expansion project is expected to increase the production capacity of high-end petrochemical products, further diversifying Saudi Arabia's industrial base and meeting the growing global demand for refined products. Once operational, the facility will also enhance the integration of the entire petrochemical value chain, creating a more efficient and sustainable ecosystem.

As a key player in this sector, the Yanbu Refinery has set a high standard for refining and petrochemical innovation. With its advanced infrastructure, including world-leading hydrotreating and catalytic reforming units, the facility produces ultra-clean transportation fuels and other high-value products. These include approximately 100,000 barrels of clean gasoline, 263,000 barrels of ultra-low sulfur diesel, as well as LPG, naphtha, petroleum coke, and sulfur, all of which are distributed globally.

This expansion agreement strengthens the long-standing relationship between Sinopec and Saudi Aramco, aligning with both companies' strategies to adapt to changing global energy dynamics, while also contributing to Saudi Arabia's ambitious diversification goals under Vision 2030. For global business professionals, particularly in the energy and petrochemical sectors, this partnership represents an example of large-scale international collaboration that aims to balance traditional energy production with the ongoing push for sustainability and innovation in the industry.

Through this partnership, Sinopec and Saudi Aramco are not only fortifying their business ties but also contributing to broader economic and environmental goals. The move is especially relevant for international stakeholders engaged in energy markets, as it signals both growth opportunities and challenges within the energy transition, underscoring the importance of cross-border collaboration in achieving long-term, sustainable growth.