Aramco, Linde and SLB to Develop CCS Hub

Aramco, one of the world’s leading integrated energy and chemicals companies, on Wednesday has signed a shareholders’ agreement with Linde and SLB, paving the way for development of a Carbon Capture and Storage (CCS) hub 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, a leading global industrial gases and engineering company, and SLB, a global technology company that drives energy innovation, each owning a 20% stake.

The announcement was made during the ongoing Saudi Green Initiative Forum in Riyadh and reflects a circular carbon economy approach to reducing emissions that will contribute to the Kingdom’s 2060 net-zero target. It represents a significant milestone for the project and is a key component in Aramco’s emission mitigation strategy.

Phase one of the CCS hub will have the capacity to capture nine million tonnes of CO2 from three Aramco gas plants and other industrial sources. The captured CO2 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.

With the support of the Saudi Arabia’s Ministry of Energy, phase one of the new CCS hub in Jubail, in the Kingdom’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. Later phases are expected to further expand its capacity.

The project will support the company’s ambition to achieve net-zero Scope 1 and   gas emissions across its wholly-owned operated assets by 2050.

Furthering Sustainability Ambitions

Ashraf Al Ghazzawi, Aramco EVP of Strategy & Corporate Development, said that CCS plays a critical role in furthering our sustainability ambitions and our new energies business. This announcement represents a step forward in delivering on Aramco’s 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,” he said.

Oliver Pfann, Linde EVP EMEA, said that carbon capture and sequestration is essential for achieving the Kingdom’s emission reduction targets and Linde is proud to collaborate with Aramco and SLB, contributing Linde’s innovative technology and experience in delivering world-scale decarbonisation projects.

Gavin Rennick, SLB President, New Energy, said that the they were proud to be a part of ground-breaking efforts to enable abatement of millions of tons of CO2 annually through the Jubail CCS hub in the Kingdom.

He added: “Leveraging our portfolio of CCS technologies and extensive experience in complex CCS projects around the world, we are confident that SLB will play a critical role in advancing this important initiative. This project aligns perfectly with our commitment to industrial decarbonisation, and we look forward to collaborating closely with Aramco and Linde to make it a success.”