PROJECTS: Saudi Aramco delays expansion of three chemical projects: Bloomberg

First published: 10-Oct-2025 11:17:36

Staff Writer

Saudi Aramco has suspended expansion plans on three chemical projects in the Kingdom as weaker oil prices curb domestic spending, according to a media report.

The state oil company is delaying the start of major engineering and design work on the facilities, including two joint ventures at Yanbu on the western Red Sea coast and another facility at Jubail on the Arabian Gulf coast, Bloomberg reported.

The Saudi-listed oil producer has already shelved a venture with Saudi Basic Industries Corporation (SABIC) to build a new crude conversion project at Ras Al Khair, the report said.

The company, which owns a 70 percent stake in SABIC, is prioritising investments in global refining and petrochemical projects located near key demand centres in China and South Korea, the new agency said.

In April 2025, Aramco, China Petroleum & Chemical Corporation (Sinopec), and Yanbu Aramco Sinopec Refining Company (Yasref) had announced the signing of a Venture Framework Agreement (VFA) intended to expand petrochemical production at Yasref, a joint venture owned by Aramco (62.5 percent) and Sinopec (37.5 percent).

In May 2025, Aramco and ExxonMobil had signed an agreement related to evaluating a significant upgrade to the SAMREF refinery in Yanbu and expanding the facility into a world-class integrated petrochemical complex.

In November 2024, Aramco, Aramco affiliate Saudi Aramco Jubail Refinery Company (SASREF), and an affiliate of Rongsheng Petrochemical Co. Ltd. (Rongsheng Petrochemical) had signed a Development Framework Agreement for an expansion project at SASREF in Jubail.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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