Aramco CCUS Hubs, $1.5 B Larsen & Toubro Contract, 9 MTPA Jubail Project, and 5 Key Partnerships (2024 to 2026)

CCUS Hubs Signal Aramco’s Shift from Projects to Infrastructure

The prevailing adoption model for Carbon Capture, Utilization, and Storage (CCUS) is shifting from isolated, single-facility projects to large-scale, centralized hubs, a strategy designed to manage high capital costs and create a service-based market for industrial decarbonization.

• Between 2021 and 2024, CCUS deployment was characterized by bespoke projects integrated into single assets, such as the operational 1.5 MTPA capture facility at Aramco‘s Hawiyah gas plant, which primarily serves Enhanced Oil Recovery (EOR) operations.
• The period from 2025 to 2026 marks a strategic pivot to a hub-and-spoke model, headlined by Aramco‘s development of the Jubail CCUS hub. This project is engineered to aggregate emissions from multiple industrial emitters, representing a fundamental change from the prior one-to-one capture model.
• This infrastructure-led approach directly addresses the primary risk of high upfront capital expenditure by enabling shared costs and operational efficiencies, with a target of driving capture costs below the current $40 to $120 per ton range.

Aramco’s $1.5 B EPC Contract for Jubail Hub Infrastructure

Aramco is anchoring its CCUS strategy with significant, multi-billion-dollar capital commitments directed at building out physical infrastructure, moving beyond pilot-scale initiatives to commercially viable, large-scale deployment.

• The most significant investment signal occurred in February 2025, when Aramco awarded a $1.5 billion Engineering, Procurement, and Construction (EPC) contract to Larsen & Toubro for the gas compression and dehydration facilities at the Jubail hub.
• This direct project funding is complemented by strategic venture capital investments through Aramco Ventures. From 2025 to 2026, the firm invested in technology startups like Spiritus and Parallel Carbon, which are developing novel Direct Air Capture (DAC) solutions aiming for costs below $100 per ton.
• These investments are timed to support Saudi Arabia’s national goal of achieving 44 MTPA of CO₂ sequestration capacity by 2035, with financial models targeting an internal rate of return (IRR) above 12%, contingent on the development of supportive carbon credit markets.

Table: Aramco CCUS and Decarbonization Investments

Linde and SLB JV, Aramco’s Partnership Model to De-Risk CCUS

Aramco is systematically using joint ventures and strategic partnerships to de-risk its multi-billion-dollar CCUS investments, pool technical expertise, and build a commercial ecosystem around its centralized hubs.

• The commercial structure for the Jubail hub, formalized in December 2024, is a joint venture where Aramco holds a 60% majority stake, with industrial gas leader Linde and subsurface technology expert SLB each holding 20%. This model distributes financial risk and integrates specialized capabilities.
• The partnership ecosystem extends to the supply chain, as seen with the $1.5 billion EPC contract awarded to Larsen & Toubro, which secures the construction capacity needed for the project’s ambitious timeline.
• Beyond project execution, Aramco established broader bilateral cooperation agreements with nations like Canada and India in 2026 to align on clean technology development, including CCUS and hydrogen, creating pathways for future market access.

Table: Aramco Strategic CCUS Partnerships

Saudi Arabia’s Jubail Hub, Aramco’s Geographic Concentration Strategy

Aramco’s CCUS strategy is geographically concentrated, focusing on developing massive hubs within Saudi Arabia to serve its dense industrial zones, a deliberate contrast to the more distributed and fragmented project locations seen globally.

• The centerpiece of this strategy is the industrial city of Jubail, selected for its high concentration of large-scale emitters in sectors like refining and petrochemicals. This geographic focus allows a single CCUS hub to serve multiple customers, maximizing asset utilization.
• While other national oil companies like Shell and Exxon Mobil are advancing CCUS projects across different continents, Aramco‘s efforts from 2024 to 2026 have been almost entirely centered on creating a domestic carbon management market first.
• The long-term vision is for these domestic hubs to serve as a foundation for a regional decarbonization network across the Middle East and North Africa (MENA), positioning Saudi Arabia as a leader in “Carbon Capture as a Service.”

Technology Readiness, Aramco Balances Mature and Emerging CCUS Tech

Aramco is deploying mature, commercially available capture technologies for its initial hub development while simultaneously investing in a portfolio of next-generation solutions to drive future cost reductions and improve efficiency.

• The Jubail hub, designed to capture 9 MTPA by 2027-2028, relies on established post-combustion capture technologies to ensure project bankability and meet near-term operational targets. This approach prioritizes Technology Readiness Levels (TRL) 7-9 for immediate scale-up.
• In parallel, from 2025 to 2026, Aramco accelerated its R&D in lower-TRL solutions. It launched its first DAC test unit in March 2025 at KAUST and invested in DAC startups like Parallel Carbon to build a long-term innovation pipeline.
• The company is also applying digital technologies to optimize existing systems. In 2026, it reported using machine learning algorithms to achieve cost reductions of 10% to 20% in industrial projects, bridging the gap between current technology and future innovations.

Chart Analyzes CO2 Capture Cost Sensitivity

This chart directly supports the section’s theme by providing a quantitative analysis of a key variable—cost—in evaluating different CCUS technologies. Understanding cost sensitivity is crucial for balancing a portfolio between mature, cost-certain technologies and emerging, potentially cheaper but riskier ones.

(Source: Oil Price)

Aramco’s CCUS SWOT, Balancing State Support with Market Risk

Aramco‘s CCUS strategy leverages its unique strengths in project execution and state backing but remains exposed to external market and policy risks that will determine its long-term commercial success.

• The strategy’s primary strength is Aramco’s proven ability to execute mega-projects, combined with access to vast domestic geological storage and strong government alignment with Saudi Arabia’s Vision 2030.
• A key weakness is the high dependency on future policy mechanisms. The profitability of its multi-billion-dollar investments hinges on the creation of robust carbon pricing or credit systems, which are still nascent in the region.
• The main opportunity is to create an entirely new business vertical in carbon management services, exporting low-carbon products like blue ammonia and positioning itself as a leader in the energy transition.
• The most significant external threat is the global pace of policy adoption. Without strong, internationally recognized carbon pricing, the economic case for CCUS at this scale could weaken, posing a risk to long-term profitability.

Table: SWOT Analysis of Aramco’s Centralized CCUS Hub Strategy

Future Hub FIDs, Aramco’s Next Major CCUS Validation Point

The most critical strategic development to watch is Aramco‘s announcement of a Final Investment Decision (FID) for subsequent phases of the Jubail hub or for new hubs, as this will serve as the definitive validation of its infrastructure-led CCUS model.

• If Aramco and its partners announce an FID for Jubail Phase 2 or a new hub by late 2026 or early 2027, it will signal that the initial project’s economic and operational model is considered successful and scalable.
• Watch for the signing of new commercial agreements with industrial emitters to become anchor tenants for future hubs. A lack of third-party offtake agreements could suggest that the “CCUS as a Service” model is struggling to gain commercial traction.
• Monitor the development of Saudi Arabia’s domestic carbon market. The introduction of a clear carbon tax, credit system, or other financial incentives is a prerequisite for making these projects bankable for a wider pool of private investors.

Middle East CCUS Growth Forecasted to 2035

The forecast provides the market context and long-term outlook that underpins the strategic importance of future Final Investment Decisions (FIDs) for new hubs. It helps validate why these decisions are critical milestones for Aramco’s CCUS strategy within a growing regional market.

(Source: Oil Price)

The questions your competitors are already asking

This report covers one angle of large-scale carbon capture deployment. The questions that matter most depend on your work.

• Other major carbon capture hubs in the Middle East
• Jubail industrial hub emissions sources
• Saudi Arabia carbon credit policy updates
• Global market for blue ammonia and hydrogen

This report does not answer these. Enki Brief Pro does.

Your question, your angle, your framework. SWOT, PESTL, scenario modelling. The same niche depth, built around the decision your work actually depends on.

Run your first brief in Enki Brief Pro