(Yicai) April 9 -- Global energy giants China Petroleum & Chemical Corporation, better known as Sinopec, and Saudi Arabian Oil Company plan to expand their joint venture refinery to meet growing demand for high-end petrochemicals in Saudi Arabia.

The project will add an ethylene cracker with an annual capacity of 1.8 million tons, an aromatics unit producing 1.5 million tons a year, and downstream polyolefin unit at the complex owned by Yanbu Aramco Sinopec Refining Company, Beijing-based Sinopec announced today.

Located in Saudi industrial hub Yanbu, YASREF can process 430,000 barrels of heavy crude oil a day and produce finished oil products and high-value-added chemicals, according to Sinopec. This year marks the 10th anniversary of the establishment of YASREF, in which Aramco owns 62.5 percent and Sinopec the rest.

“YASREF, a flagship joint venture symbolizing China-Saudi energy cooperation, has not only served as a key driver for Saudi Arabia’s local economic growth but also actively advanced petrochemical industry upgrades,” Sinopec President Zhao Dong said in a press release.

“The YASREF expansion project represents a significant milestone in our bilateral partnership, ushering in a new phase of deeper and more far-reaching collaboration,” Zhao added.

Aramco President and Chief Executive Amin H. Nasser said the project “solidifies our commitment to the innovation and diversification of products. We look forward to strengthening collaboration with Sinopec to help YASREF become a world-class, fully integrated refining and petrochemical complex, consolidating Saudi Arabia’s leading role in energy and chemicals.” 

Their collaboration dates back to 2007, when the two companies partnered with US energy giant Exxon Mobil to build Fujian Refining & Petrochemical, the first China-foreign refining and petrochemical JV, in southeastern Fujian province, with a total investment of CNY40 billion (USD5.4 billion).

Sinopec and Aramco are also developing a new integrated refining and petrochemical complex in Fujian, with an estimated total investment of CNY71.1 billion (USD9.7 billion). The project is expected to be completed by 2028.

Editor: Tom Litting