Saudi Aramco CCUS Projects: $1.5 B Larsen & Toubro Deal, 9 Mtpa Hub, and Key Alliances (2021-2025)

Saudi Aramco Project Deployments Signal Shift from Planning to Execution

In 2025, Saudi Aramco solidified its dual-track carbon capture strategy, moving from strategic announcements to large-scale capital deployment and pilot-stage execution. This approach simultaneously advances commercially mature Carbon Capture, Utilization, and Storage (CCUS) for industrial point sources while testing emerging Direct Air Capture (DAC) technologies. This strategic balance is designed to manage decarbonization risks, build new revenue streams, and secure the company’s role in a changing global energy market.

Jubail Hub Moves to Construction Phase

The centerpiece of Saudi Aramco’s strategy advanced significantly in 2025, shifting from an objective to a funded project.

• Between 2021 and 2024, the Jubail CCUS hub was primarily in the planning and partnership formation stage, with the joint development agreement with SLB and Linde marking the key milestone.
• The pivotal change in 2025 was the award of a $1.5 billion engineering, procurement, and construction (EPC) contract to Larsen & Toubro on February 24, 2025, signaling the official start of the construction phase for the 9 million tonnes per annum (Mtpa) facility.
• This tangible commitment to one of the world’s largest CCUS projects validates the commercial readiness of point-source capture for decarbonizing gas processing facilities and heavy industry, forming the core of the company’s 2050 net-zero ambition.

DAC Pilot Program Initiated

While committing billions to proven CCUS, Saudi Aramco also initiated its first tangible project in the nascent DAC sector in 2025.

• Prior to 2025, Saudi Aramco’s involvement in DAC was largely through its venture capital arm and strategic statements, with no operational assets in the Middle East.
• In a significant move, the company launched the Middle East’s first DAC pilot plant in Dhahran in partnership with Siemens Energy. The project, though small at 12 tons of CO₂ per year, provides a critical testbed for evaluating technology performance in the region’s harsh climate.
• This investment into DAC initiatives represents a strategic hedge, allowing the company to gain operational experience and assess the economic viability of a technology not tied to industrial emissions sources, which is a key part of its broader energy technology portfolio.

$1.5 B Contract and Strategic Reallocations Define Saudi Aramco’s 2025 CCUS Commitments

Saudi Aramco’s financial strategy in 2025 involved a major capital injection into its flagship CCUS project, alongside a pragmatic recalibration of its blue hydrogen ambitions, effectively reallocating future capital away from less mature value chains. This demonstrates a focus on projects with clearer near-term commercial pathways and infrastructure readiness.

Blue Ammonia Target Reduction

A major strategic signal in 2025 was the significant downward revision of the company’s blue ammonia production goals.

• In March 2025, CEO Amin Nasser announced a dramatic cut in the 2030 blue ammonia production target from 11 Mtpa to 2.5 Mtpa, a reduction of over 77%.
• This revision reflects a pragmatic assessment of the economic and logistical challenges associated with scaling the blue hydrogen and ammonia export market, which relies heavily on CCUS infrastructure.
• The decision redirects capital and strategic focus towards more immediate decarbonization priorities, such as the Jubail hub, while maintaining a smaller, more realistic position in the developing blue hydrogen market.

Jubail Hub EPC Investment

The award of the $1.5 billion EPC contract for the Jubail CCUS hub is the most significant single investment in Saudi Aramco’s decarbonization program to date.

• This contract with Larsen & Toubro, confirmed on February 24, 2025, moves the project from the design phase into physical construction.
• It provides a strong demand signal to the entire CCUS supply chain, from technology providers to construction firms, and underpins the project’s credibility.
• This capital commitment is a core component of the national goal to establish a 44 Mtpa carbon capture capacity by 2035 and is structured to de-risk execution by leveraging an experienced international EPC partner.

Table: Key Saudi Aramco Carbon Capture Investments and Strategic Revisions (2025)

Saudi Aramco’s Key Alliances with SLB, Linde, and Siemens Energy

Saudi Aramco’s carbon capture strategy is built on a foundation of strategic partnerships with global technology and engineering leaders. These collaborations are essential for de-risking execution, accessing specialized expertise, and accelerating the deployment of its large-scale CCUS and pilot DAC projects.

Jubail Hub Joint Venture

The Jubail CCUS hub is structured as a joint venture, distributing risk and integrating expertise across the value chain.

• Saudi Aramco entered a joint development agreement with SLB and Linde to design and build the 9 Mtpa hub. This structure leverages Linde’s proficiency in gas processing and CO₂ liquefaction and SLB’s expertise in subsurface characterization and sequestration.
• By bringing in these partners before the final investment decision, Saudi Aramco secured access to best-in-class technology and project management capabilities, which is critical for a project of this scale and complexity.

Technology and EPC Partnerships

Beyond the main joint venture, Saudi Aramco has engaged specific partners for technology development and project execution.

• The partnership with Siemens Energy for the DAC pilot plant in Dhahran provides Aramco with access to a leading proprietary solid sorbent technology and the operational know-how to test its effectiveness in local conditions.
• The selection of Larsen & Toubro as the EPC contractor for the Jubail hub brings a partner with extensive experience in executing large-scale industrial projects in the region, mitigating construction and timeline risks.

Table: Key Saudi Aramco Carbon Capture Partnerships (2025)

Saudi Arabia as Hub, with Strategic Extension into US Low-Carbon Value Chains

In 2025, Saudi Aramco’s geographic focus for carbon capture remained centered on Saudi Arabia, with the Jubail hub positioned as the anchor for the nation’s industrial decarbonization. Simultaneously, the company began using commercial agreements to extend its low-carbon strategy internationally, particularly into the United States.

• From 2021 to 2024, Aramco’s operational CCUS activities were confined to its existing facilities in Saudi Arabia, such as the Uthmaniyah plant. Strategic focus was on domestic project planning.
• The major shift in 2025 was the formal start of the Jubail hub’s construction, solidifying the Eastern Province as the epicenter of one of the world’s largest CCUS developments and a cornerstone of Saudi Arabia’s 2060 net-zero goal.
• Concurrently, Aramco expanded its strategic footprint into the U.S. market. On April 14, 2025, it signed an LNG offtake agreement with Next Decade, whose Rio Grande facility is paired with a large-scale CCUS project. This move links its LNG expansion to decarbonization infrastructure abroad.
• This dual geographic strategy allows Aramco to build a concentrated, world-scale decarbonization hub at home while using its commercial power to influence and participate in the development of low-carbon energy value chains in key international markets.

SWOT Analysis of Saudi Aramco’s Carbon Capture Initiatives

Saudi Aramco’s aggressive push into carbon capture in 2025 consolidates its strengths in project execution and capital deployment while exposing it to new risks related to technology scaling and market development. The year’s activities validated the company’s commitment to large-scale CCUS but also forced a pragmatic reassessment of its ambitions in related low-carbon markets.

Table: SWOT Analysis for Saudi Aramco Carbon Capture Initiatives

Saudi Aramco Scenario Modelling: Jubail Hub Execution and the Path to 44 Mtpa

The central question for Saudi Aramco’s carbon capture strategy heading into 2026 is its ability to execute the Jubail CCUS hub on schedule and budget, as this project is the primary enabler of its 2035 and 2050 decarbonization targets. If the project progresses without significant delays, it will validate the company’s megaproject management capabilities in the low-carbon space and accelerate momentum toward the national 44 Mtpa goal.

• If this happens: Progress on the Jubail hub remains on track for the 2027 commissioning date.
• Watch this: Look for announcements related to the procurement of long-lead items (e.g., capture units, compressors) and the achievement of major construction milestones throughout 2026. Further, monitor for a Final Investment Decision (FID) on the next tranche of projects required to meet the 44 Mtpa by 2035 ambition.
• These could be happening: Success at Jubail could trigger Aramco to take a more active role in developing similar hubs in other industrial cities or to expand its international strategy from simple offtake agreements to direct equity stakes in CCUS projects abroad. Conversely, any announced delays or cost overruns at Jubail would signal significant execution challenges, potentially forcing a re-evaluation of the timeline for its broader 2050 net-zero plan.

Global CCUS Market Poised for Explosive Growth by 2035
The Global Carbon Capture, Utilization, and Storage (CCUS) market is projected to reach USD 75.92 billion by 2035, growing at a robust CAGR of 27.4% from 2026. The ‘Capture” segment remains the dominant component, accounting for over 40% of the market throughout the forecast period, highlighting the primary investment focus on initial CO2 removal.

Massive De-carbonization Drive Creates Multi-Billion Dollar Opportunity
This significant market expansion, particularly in ‘Capture” technology, signals a critical global pivot towards industrial decarbonization and compliance with stringent emissions targets. The rapid growth indicates strong government incentives, escalating corporate ESG pressures, and the increasing viability of CCUS as a critical climate solution, unlocking multi-billion dollar opportunities.

(Source: EVOLVANCE MARKET RESEARCH — via Advancing Carbon Capture for a lower-carbon future | Aramco)

The questions your competitors are already asking

This report covers one angle of Saudi Aramco’s carbon capture strategy. The questions that matter most depend on your work.

• Jubail carbon capture hub construction progress
• Status of global blue ammonia export projects
• Cost per ton for commercial direct air capture
• Saudi Arabia’s next major carbon capture projects

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