meed-logo

line1 line2 line3
SIGN IN / REGISTER

Aramco seeks consultant for carbon capture project

20 June 2025

Saudi Aramco has issued a tender for project management consultancy (PMC) services related to the first phase of its Accelerated Carbon Capture and Sequestration (ACCS) project. The objective of the project is to develop a large-scale CCS hub in Jubail Industrial City in Saudi Arabia’s Eastern Province that will have the capacity to store and sequester up to 9 million metric tonnes a year (t/y) of carbon dioxide (CO2).

Aramco has set a deadline of 30 June for firms to submit bids for the PMC tender, sources told MEED.

The project management consultant that is appointed will oversee engineering, procurement and construction (EPC) works on the first phase of the ACCS project, according to sources.

MEED reported in February that Larsen & Toubro Energy Hydrocarbon (LTEH), a subsidiary of India’s Larsen & Toubro Group, had been picked by Aramco to perform EPC work on the project. The value of the project’s main EPC contract is estimated to be about $1.5bn, sources said.

Following this, Al-Khobar-based contractor Denys Arabia won a contract for the EPC scope of work on the main pipeline network.

Separately, Saudi Steel Pipe Company announced that its subsidiary, Global Pipe Company, had won an order from Aramco for the supply of longitudinal submerged arc welding pipes for the ACCS project’s first phase. The value of the contract is SR910m ($243m) and its duration is 15 months, Saudi Steel Pipe Company said in a filing with the Saudi Stock Exchange (Tadawul) on 10 February.

Aramco signed a shareholders’ agreement in December with Germany-headquartered Linde and US-based oil field services provider SLB for the first phase of the ACCS project.

Under the agreement, Aramco took control of a 60% equity interest in the planned CCS hub in Jubail, with Linde and SLB taking 20% stakes each. In early 2023, MEED reported that Aramco had brought on board SLB (formerly Schlumberger), and Linde, the world’s largest industrial gas producer, as partners for phase one of the ACCS.

Construction of the planned CCS hub in Jubail is expected to be completed by the end of 2027. “Later phases are expected to further expand its capacity,” Aramco said in December.

UK-headquartered Wood Group has performed the front-end engineering and design works on the first phase of the ACCS scheme, MEED previously reported.

Japan’s Mizuho is understood to be the financial advisor for the ACCS scheme.

Aramco ACCS objectives

The objective of the ACCS scheme, which is expected to have nine phases in total, is to capture CO2 from Aramco’s northern gas plants of Wasit, Fadhili and Khursaniyah, as well as from the operations of its subsidiary Saudi Basic Industries Corporation (Sabic) and from Saudi industrial gases provider Air Products Qudra.

The ACCS project’s first phase is expected to have a capacity of about 9 million t/y, with the collection pipeline system designed to support a future expansion of the scheme.

The main facility that will be built in Jubail as part of the first phase of the ACCS will capture streams from the acid gas enrichment units of the Wasit, Fadhili and Khursaniyah plants. The CO2 will be compressed, dried and fed into the collection pipeline system.

The network will also absorb additional CO2 volumes from Sabic and Air Products Qudra after the initial compression and drying of the CO2 discharge at their respective facilities.

The combined gaseous CO2 stream will then be compressed at the centralised compression facility, located at Fadhili, into dense-phase CO2 and sent into the main pipeline for sequestration.

The main pipeline network will transport the CO2 about 240 kilometres away for injection into the Jaham-Duhul-Maqlah saline aquifer.

The scope of work on the ACCS project‘s first phase finishes at the injection well control skids. Injection wells and other associated units are outside the scope of the ACCS project, Aramco said in the solicitation of interest document that was released in January 2023.

Aramco sustainability measures

Aramco is making its core operations more environmentally friendly to meet its target of attaining net-zero carbon emissions by 2050, and in line with Saudi Arabia’s net-zero emissions by 2060 target.

“The [ACCS] 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,” Aramco said in its December statement.

Unlike its international counterparts, Aramco does not face significant pressure from climate activists and investors to slash CO2 and greenhouse gas emissions and ramp up efforts to tackle climate change.

However, as the main engine of Saudi Arabia’s economy, Aramco is crucial in helping the kingdom to achieve its environmental commitments.

READ THE JUNE 2025 MEED BUSINESS REVIEW – click here to view PDF

Gulf accelerates AI and data centre strategy; Baghdad keeps up project spending, but fiscal clouds gather; Banking stocks rise despite lower global oil prices

Distributed to senior decision-makers in the region and around the world, the June 2025 edition of MEED Business Review includes:

> GULF PROJECTS INDEX: Gulf projects index leaps 4.3%
To see previous issues of MEED Business Review, please click here
https://image.digitalinsightresearch.in/uploads/NewsArticle/14104979/main5846.jpg
Indrajit Sen

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Oman’s Barka 5 IWP solar plant begins full operations

    1 May 2026

    Spain’s GS Inima has begun permanent operations at the solar photovoltaic (PV) plant serving the Barka 5 independent water project (IWP) in Oman.

    The solar facility is the third of its kind in Oman to power a large-scale desalination facility through a self-supply model.

    In a statement, GS Inima said it will provide up to 50% of the desalination plant’s electricity needs during daytime operations, improving efficiency and reducing reliance on external power sources.

    The PV plant has an installed capacity of 6.5MWp. It is designed to optimise energy consumption at the adjacent reverse osmosis desalination facility.

    The project was developed by GS Inima in collaboration with local firm Nafath Renewable Energy as the engineering, procurement and construction (EPC) contractor. China-based OCA Global provided owner’s engineering services.

    The Barka 5 IWP has a desalination capacity of approximately 100,000 cubic metres a day.

    GS Inima won the contract to develop the Barka 5 IWP project in November 2020. As previously reported, financial close was reached in 2022, and construction of the facility was completed in 2024.  

    The self-supply solar PV plant is equipped with 10,504 bifacial modules supplied by China’s Jinko Solar. These are mounted on fixed structures provided by Mibet Energy.

    Power is managed through 18 Sungrow inverters with a total capacity of 320kWac each, while electricity is fed into the desalination plant through an 11kV connection.

    The integration of solar power supports the efficiency of the Barka 5 facility, which has an energy consumption rate of 2.7kWh per cubic metre. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16645971/main.jpg
    Mark Dowdall
  • Qiddiya receives high-speed rail PPP prequalifications

    1 May 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Royal Commission for Riyadh City, in collaboration with Qiddiya Investment Company (QIC) and the National Centre for Privatisation & PPP, received prequalification statements from firms on 30 April for the public-private partnership (PPP) package of the Qiddiya high-speed rail project in Riyadh.

    This follows the submission of prequalification statements for the engineering, procurement, construction and financing (EPCF) package on 16 April, as reported by MEED.

    The prequalification notice was issued on 19 January, and a project briefing session was held on 23 February at Qiddiya Entertainment City.

    The Qiddiya high-speed rail project, also known as Q-Express, will connect King Salman International airport and the King Abdullah Financial District (KAFD) with Qiddiya City. The line will operate at speeds of up to 250 kilometres an hour, reaching Qiddiya in 30 minutes.

    The line is expected to be developed in two phases. The first phase will connect Qiddiya with KAFD and King Khalid International airport.

    The second phase will start from a development known as the North Pole and travel to the New Murabba development, King Salman Park, central Riyadh and Industrial City in the south of the city.

    In November last year, MEED reported that more than 145 local and international companies had expressed interest in developing the project, including 68 contracting companies, 23 design and project management consultants, 16 investment firms, 12 rail operators, 10 rolling stock providers and 16 other services firms.

    In November 2023, MEED reported that French consultant Egis had been appointed as the technical adviser for the project. UK-based consultancy Ernst & Young is acting as the transaction adviser, and Ashurst is the legal adviser.

    Qiddiya is one of Saudi Arabia’s five official gigaprojects and covers a total area of 376 square kilometres (sq km), with 223 sq km of developed land. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16641057/main.gif
    Yasir Iqbal
  • Bid deadline extensions hint at tighter project market

    1 May 2026

    Commentary
    Mark Dowdall
    Power & water editor

    There has been a steady run of bid deadline extensions across major power and water projects in recent weeks.

    The latest is the Al-Dibdibah and Al-Shagaya solar independent power producer (IPP) plant in Kuwait, where the submission date has been moved again to 31 May, following an earlier shift from February to the end of April. Similarly, bidding for the first phase of the Al-Khairan IWPP has also been extended.

    In Bahrain, bidding for the 1.2GW Sitra IWPP has been pushed back by another month to 17 May, having already been under main contract tender since last August.

    Meanwhile, in Dubai, contractors have been given additional time to submit bids for both the Jebel Ali sewage treatment plant expansion and a dams rehabilitation project in Hatta.

    Individually, these shifts are not unusual, and extensions are a routine part of the procurement cycle, especially with large, capital-intensive schemes.

    However, amid regional tensions and increasingly complex risk profiles, stakeholders are having to weigh up how much they can absorb, whether that is performance guarantees, financing exposure or delivery risk.

    For contractors and developers, this could mean looking more closely at supply chains, insurance costs and the potential for disruption. Lenders, too, are likely taking a more measured view on long-term exposure.

    This caution can show up in the bid process. More internal approvals, more conservative pricing, and in some cases, perhaps a hesitation to commit altogether.

    At the same time, strong pipelines across the GCC mean contractors are not short of work. Firms can afford to be selective, focusing on projects where risk and return are better aligned.

    Clients, in turn, face a choice. Push ahead with more limited competition or extend and try to draw in stronger participation. Most appear to be opting for the latter.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16640998/main.jpg
    Mark Dowdall
  • Saudi Arabia launches $2bn Jawharat Al-Arous project

    1 May 2026

    Saudi Arabia has launched Jawharat Al-Arous, an SR8bn ($2bn) private-sector-led residential development in north Jeddah.

    The scheme covers 107 million square metres and comprises 18 residential neighbourhoods planned to accommodate more than 700,000 residents. It will provide more than 80,000 residential and commercial plots.

    The masterplan also includes 41 government-backed infrastructure and service zones to support large-scale urban expansion.

    The project was unveiled by Mecca Region Governor Khalid Al-Faisal and will be overseen by Saud Bin Mishaal Bin Abdulaziz.

    According to a recent report by real estate firm Cavendish Maxwell, Jeddah’s residential stock stood at about 1.09 million units at the end of 2025, following the completion of around 4,000 units that year.

    An expanding pipeline of about 18,000 units in 2026 and 22,000 units in 2027 is expected to bring total stock to around 1.14 million units by 2027, gradually adding supply without destabilising market equilibrium.

    GlobalData expects the Saudi construction industry to grow by 3.6% in real terms in 2026, supported by increased foreign direct investment (FDI) and investment in the housing and manufacturing sectors.

    The residential construction sector is forecast to grow by 3.8% in real terms in 2026 and to record an average annual growth rate of 4.7% between 2027 and 2030, supported by Saudi Vision 2030’s goal of increasing homeownership from 65.4% in 2024 to 70% by 2030, including through the delivery of 600,000 homes by 2030.

    MEED’s April 2026 report on Saudi Arabia includes:

    > COMMENT: Risk accelerates Saudi spending shift
    > GVT &: ECONOMY: Riyadh navigates a changed landscape
    > BANKING: Testing times for Saudi banks
    > UPSTREAM: Offshore oil and gas projects to dominate Aramco capex in 2026
    > DOWNSTREAM: Saudi downstream projects market enters lean period
    > POWER: Wind power gathers pace in Saudi Arabia
    > WATER: Sharakat plan signals next phase of Saudi water expansion
    > CONSTRUCTION: Saudi construction enters a period of strategic readjustment
    > TRANSPORT: Rail expansion powers Saudi Arabia’s infrastructure push

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16640863/main.png
    Yasir Iqbal
  • Damage to US bases in region expected to cost more than $15bn

    1 May 2026

    The $25bn estimate a Pentagon official gave US lawmakers on 29 April did not include the cost of repairing damage to US bases in the Middle East, and the real cost of the war is likely to be between $40bn and $50bn, according to CNN.

    That would put the cost of repairing bases and replacing destroyed assets at between $15bn and $25bn.

    Jules Hurst III, the Pentagon official serving as the agency’s comptroller, told the House Armed Services Committee that “most” of the $25bn he cited had been spent on munitions. Defence Secretary Pete Hegseth declined to say whether the figure included repairs to damaged US bases.

    Iranian strikes across the Gulf in the early days of the war significantly damaged at least nine US military sites in 48 hours, hitting facilities in Bahrain, Kuwait, Iraq, the UAE and Qatar.

    Six US servicemembers were killed in an attack on a command post in Kuwait, and 20 more were injured.

    Three sources told CNN that the figure provided to the House Armed Services Committee did not include the cost of rebuilding US military installations and replacing destroyed assets.

    One source said the true cost would likely be between $40bn and $50bn.

    US contractors such as KBR and Fluor, as well as local firms, are likely to be among the leading contenders for contracts to repair and rebuild US bases in the region.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16638663/main.gif
    Wil Crisp