Aramco, Linde, SLB Sign Deal for Major CCS Hub

Aramco, one of the world’s leading integrated energy and chemicals companies, has signed a shareholders’ agreement with Linde and SLB to develop a Carbon Capture and Storage (CCS) hub in Jubail expected to rank among the largest on the globe. The agreement, announced via the Saudi Press Agency on December 4, 2024, establishes Aramco with a 60% equity interest, while Linde and SLB will each hold 20% stakes in the venture. Phase one of the hub, located in the Kingdom’s Eastern Region, is expected to capture and store up to nine million metric tons of CO2 annually, with construction targeted for completion by the end of 2027.

The deal was reached during the Saudi Green Initiative Forum in Riyadh, underscoring the Kingdom’s circular carbon economy approach and its 2060 net-zero target. Supported by the Ministry of Energy, the project forms a key component of Aramco’s emission mitigation strategy and supports the company’s ambition to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly owned operated assets by 2050. Isn’t it remarkable how a single agreement can signal both industrial scale and environmental ambition? The collaboration brings together three global energy and industrial players in a structure that combines Aramco’s operational scale, Linde’s technology and project delivery experience, and SLB’s CCS portfolio.

Context and Background

Why has carbon capture and storage moved from the margins of energy policy to the center of national strategies? For Saudi Arabia, the answer lies in the scale of its energy system and its determination to decarbonize without sacrificing reliability. Aramco has been investing in CCS research and deployment for years, and the Jubail hub represents the culmination of that work into a single, integrated project. The Ministry of Energy’s support reflects a whole-of-government approach that treats emissions reduction as a strategic priority rather than an afterthought. The hub is designed to capture CO2 from three Aramco gas plants and other industrial sources, transporting it through a pipeline for permanent storage below ground in a saline aquifer sink.

Linde, a global industrial gases and engineering company, brings deep experience in delivering world-scale decarbonization projects. SLB, formerly Schlumberger, contributes a proven portfolio of CCS technologies and extensive experience in complex CCS projects around the world. Together with Aramco, the three partners are positioning the Jubail hub as a model for industrial decarbonization that can be replicated in other regions. The Kingdom’s geological potential for CO2 storage, particularly in saline aquifers, provides a natural advantage that few countries can match. How often does a project align technical feasibility, industrial demand, and national policy so cleanly?

The timing is significant. Global demand for affordable, reliable, and more sustainable energy continues to rise, and Saudi Arabia has positioned itself as a supplier that can meet that demand while investing in lower-carbon solutions. The shareholders’ agreement is not merely a financial arrangement; it is a commitment to operational excellence and technological innovation. Ashraf Al Ghazzawi, Aramco’s Executive Vice President of Strategy & Corporate Development, described CCS as critical to furthering the company’s sustainability ambitions and new energies business. The project also reflects the Kingdom’s broader vision of a circular carbon economy, in which emissions are reduced, reused, recycled, and removed.

Key Details

What exactly does the shareholders’ agreement deliver? Under its terms, Aramco will take a 60% equity interest in the CCS hub, while Linde and SLB will each own 20%. This structure gives Aramco operational leadership while ensuring that its partners have a meaningful stake in the project’s success. Phase one is expected to capture and store up to nine million metric tons of CO2 annually, a figure that places the Jubail hub among the largest CCS facilities in the world. Construction is expected to be completed by the end of 2027, with later phases anticipated to further expand capacity. The captured CO2 will be transported through a pipeline and stored in a saline aquifer sink, leveraging the Kingdom’s significant geological potential.

Oliver Pfann, Linde’s Executive Vice President for EMEA, said carbon capture and sequestration is essential for achieving the Kingdom’s emission reduction targets. He expressed pride in collaborating with Aramco and SLB, contributing Linde’s innovative technology and experience in delivering world-scale decarbonization projects. Gavin Rennick, SLB’s President of New Energy, described the Jubail hub as ground-breaking and said it aligns perfectly with SLB’s commitment to industrial decarbonization. He expressed confidence that SLB will play a critical role in advancing the initiative. These statements reflect a shared understanding that CCS is not a niche technology but a pillar of any credible net-zero pathway.

The hub’s first phase will capture CO2 from three Aramco gas plants and other industrial sources, making it an integrated solution that addresses emissions from multiple points in the industrial ecosystem. The pipeline transport and saline aquifer storage components demonstrate the importance of infrastructure in making CCS viable at scale. Saudi Arabia’s geological formations are well suited to permanent CO2 storage, and the project will generate valuable data and experience that can inform future CCS deployments. The agreement also includes provisions for later phases, which are expected to expand the hub’s capacity beyond the initial nine million metric tons per year. Could this become the template for industrial clusters around the world?

International and Regional Impact

How will the Jubail CCS hub influence global energy markets and climate diplomacy? The project reinforces Saudi Arabia’s position as a responsible energy producer that is investing in emissions reduction alongside production capacity. For international partners, the agreement signals that the Kingdom is open for collaboration on advanced energy technologies. Linde and SLB are global companies with shareholders and operations across multiple continents, and their participation in the Jubail hub sends a strong signal that CCS is a bankable, scalable business. The project also supports the Kingdom’s 2060 net-zero target and its circular carbon economy approach, which emphasizes reducing, reusing, recycling, and removing carbon.

At the regional level, the hub is expected to support the development of a lower-carbon economy in the Eastern Region and beyond. The Jubail industrial area is already one of the world’s largest industrial complexes, and adding a world-scale CCS hub enhances its competitiveness and sustainability. Neighboring countries and trading partners are likely to watch the project closely as they consider their own decarbonization pathways. The collaboration between Aramco, Linde, and SLB also demonstrates the value of global partnerships in driving technological innovation and reducing emissions from conventional energy sources. In a world that needs both energy security and climate action, projects like this show that the two goals are not mutually exclusive.

Economic and Strategic Significance

What does the CCS hub mean for Saudi Arabia’s economy and its strategic direction? The project is a significant investment in industrial infrastructure that will create jobs, support local supply chains, and enhance the Kingdom’s technical expertise in carbon management. It also aligns with Vision 2030’s goal of diversifying the economy and developing new sectors. CCS is expected to become a major industry in its own right, and Saudi Arabia is positioning itself at the forefront. The hub’s capacity to capture nine million metric tons of CO2 annually from three Aramco gas plants and other industrial sources makes it a strategic asset that can support both domestic emissions reduction and potential future CO2 utilization or storage services.

The agreement also reinforces Aramco’s role as a leader in lower-carbon energy solutions. The company has stated that the CCS hub is among several programs that will enable it to meet rising demand for affordable, reliable, and more sustainable energy. By taking a 60% equity interest, Aramco retains control over a critical component of its emission mitigation strategy while benefiting from the expertise of Linde and SLB. The project’s phased approach allows for learning and optimization before further expansion, which is a prudent way to manage a complex, first-of-its-kind endeavor. For Linde and SLB, the partnership provides access to a large-scale project that showcases their technologies and capabilities in a key growth market.

Vision 2030 Alignment

How does the Jubail CCS hub fit into Saudi Arabia’s long-term vision? Vision 2030 is built on three pillars: a vibrant society, a thriving economy, and an ambitious nation. The CCS hub contributes to all three by supporting environmental sustainability, creating economic opportunities, and demonstrating the Kingdom’s commitment to global climate goals. It also aligns with the National Environment Strategy and the Saudi Green Initiative, which aim to reduce emissions and increase reliance on clean energy. The project’s circular carbon economy approach is a practical expression of the Kingdom’s belief that economic growth and environmental stewardship can go hand in hand.

As the world transitions to a lower-carbon future, Saudi Arabia is investing in the technologies and partnerships that will define the next era of energy. The shareholders’ agreement between Aramco, Linde, and SLB is a milestone in that journey, and the Jubail hub will serve as a testament to what can be achieved when governments, national energy champions, and global technology leaders work together. With construction expected to be completed by the end of 2027, the project is set to become a cornerstone of the Kingdom’s emission mitigation efforts and a symbol of its broader ambition to lead in the global energy transition. Isn’t that the kind of legacy that Vision 2030 was designed to build?

20 Questions

Q1. What is the Jubail CCS hub?

A1. It is a Carbon Capture and Storage project in Jubail, Saudi Arabia, expected to be one of the world’s largest. Phase one will capture and store up to nine million metric tons of CO2 annually from Aramco gas plants and other industrial sources.

Q2. Who signed the shareholders’ agreement?

A2. Aramco, Linde, and SLB signed the agreement. Aramco holds a 60% equity interest, while Linde and SLB each hold 20%. The deal was announced via the Saudi Press Agency on December 4, 2024.

Q3. When was the agreement announced?

A3. The agreement was announced on December 4, 2024, during the Saudi Green Initiative Forum in Riyadh. It reflects the Kingdom’s circular carbon economy approach and supports its 2060 net-zero target.

Q4. Where is the CCS hub located?

A4. The hub is located in Jubail, in the Kingdom’s Eastern Region. Jubail is home to one of the world’s largest industrial complexes, making it a suitable location for a large-scale CCS project.

Q5. What is the capacity of phase one?

A5. Phase one is expected to capture and store up to nine million metric tons of CO2 annually. This capacity places the hub among the largest CCS facilities globally. Later phases are expected to expand capacity further.

Q6. When will construction be completed?

A6. Construction of phase one is expected to be completed by the end of 2027. The project timeline allows for engineering, procurement, and construction activities to proceed in a structured manner.

Q7. Where will the captured CO2 be stored?

A7. The captured CO2 will be transported through a pipeline and stored below ground in a saline aquifer sink. This leverages the Kingdom’s significant geological potential for CO2 storage.

Q8. What is Aramco’s equity stake?

A8. Aramco will take a 60% equity interest in the CCS hub. This majority stake gives Aramco operational leadership and ensures alignment with its emission mitigation strategy.

Q9. What are Linde and SLB’s stakes?

A9. Linde and SLB will each own a 20% stake in the CCS hub. Their combined 40% interest reflects their roles in providing technology, engineering, and project delivery expertise.

Q10. What did Ashraf Al Ghazzawi say?

A10. Aramco’s EVP of Strategy & Corporate Development said CCS plays a critical role in furthering sustainability ambitions and the new energies business. He noted the collaboration demonstrates the importance of global partnerships in driving technological innovation.

Q11. What did Oliver Pfann say?

A11. Linde’s EVP EMEA said carbon capture and sequestration is essential for achieving the Kingdom’s emission reduction targets. He expressed pride in collaborating with Aramco and SLB on this landmark project.

Q12. What did Gavin Rennick say?

A12. SLB’s President New Energy said the company is proud to be part of ground-breaking efforts to enable abatement of millions of tons of CO2 annually. He said the project aligns with SLB’s commitment to industrial decarbonization.

Q13. How does the project support Aramco’s net-zero ambition?

A13. The project supports Aramco’s ambition to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly owned operated assets by 2050. CCS is a key component of its emission mitigation strategy.

Q14. What is the circular carbon economy approach?

A14. It is an approach that emphasizes reducing, reusing, recycling, and removing carbon emissions. The Jubail CCS hub reflects this approach and contributes to the Kingdom’s 2060 net-zero target.

Q15. Which ministry supports the project?

A15. The Ministry of Energy supports the project. Its backing reflects a whole-of-government approach to emissions reduction and sustainable energy development in the Kingdom.

Q16. What is the significance for the Eastern Region?

A16. The hub enhances the competitiveness and sustainability of the Jubail industrial area. It supports the development of a lower-carbon economy and creates opportunities for local supply chains and jobs.

Q17. How does this project align with Vision 2030?

A17. It supports Vision 2030’s goals of economic diversification, environmental sustainability, and global engagement. It also aligns with the Saudi Green Initiative and the National Environment Strategy.

Q18. What role does SLB play in the project?

A18. SLB contributes its proven portfolio of CCS technologies and extensive experience in complex CCS projects worldwide. It will play a critical role in advancing the initiative’s technical and operational success.

Q19. What role does Linde play?

A19. Linde contributes innovative technology and experience in delivering world-scale decarbonization projects. Its expertise in industrial gases and engineering is essential to the hub’s development.

Q20. What are the later phases expected to do?

A20. Later phases are expected to further expand the hub’s capacity beyond the initial nine million metric tons per year. They will build on the learnings from phase one to scale up CCS deployment.