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Saudi oil and gas giant Aramco has signed a shareholders’ agreement with Linde and SLB paving the way for development of a Carbon Capture and Storage (CCS) hub in Jubail that is expected to become one of the largest globally.
Under the terms of the shareholders’ agreement Aramco will take a 60% equity interest in the CCS hub, with Linde and SLB each owning a 20% stake.
The agreement represents a significant milestone for the project and is a key component in Aramco’s emission mitigation strategy.
With the support of the Ministry of Energy, phase one of the new CCS hub in Jubail, in the Kingdom of Saudi Arabia’s Eastern Province, is expected to capture and store up to nine million metric tons of CO2 annually, and construction is expected to be completed by the end of 2027.
The CO2 will be captured from Aramco gas plants and other industrial sources. Then, it will be transported through a pipeline network and stored below ground in a saline aquifer sink, leveraging the Kingdom’s significant geological potential for CO2 storage.
Later phases are expected to further expand its capacity.
The project will support the company’s ambition to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly-owned operated assets by 2050.
“CCS plays a critical role in furthering our sustainability ambitions and our new energies business. This announcement represents a step forward in delivering on our strategy to contribute to global carbon management solutions and achieve our emission mitigation goals.
“Aramco’s collaboration with SLB and Linde demonstrates the importance of global partnerships in driving technological innovation, reducing emissions from conventional energy sources and enabling new, lower-carbon energy solutions. This CCS hub is among several programs that will enable us to meet rising demand for affordable, reliable, and more sustainable energy,” said Ashraf Al Ghazzawi, Aramco EVP of Strategy & Corporate Development. |
