Saudi Aramco has signed multiple deals with South Korean players that are aimed at developing low-carbon energy solutions and advancing its downstream strategy.
Aramco this week confirmed the “signing of one agreement and nine Memoranda of Understanding (MoU’s) with leading Korean entities.”
The Saudi Arabian state-controlled giant said, “the agreements also include MoU’s with Korean energy companies KepcoO, S-Oil, Posco, Hyundai Oilbank, H2Korea and Lotte Chemical to explore potential collaboration in the supply, transportation, utilisation and certification of hydrogen and ammonia.”
“The companies also plan to study the feasibility of converting exported ammonia into hydrogen – a process known as ammonia back-cracking,” it noted.
This represents the first step towards a potential large-scale production facility for hydrogen and ammonia in Saudi Arabia, which would also include a carbon capture and storage (CCS) facility, Aramco added.
Aramco chief executive Amin Nasser said the deals support the company’s “shared goal of finding climate solutions and lowering greenhouse gas emissions through the development of low-carbon hydrogen and ammonia production, as well as carbon capture and storage.”
Aramco also signed a “Heads of Terms agreement with the Export-Import Bank of Korea (K-EXIM) to explore strategic financing solutions,” supporting Aramco’s investment activities involving Korean companies.
In addition, Aramco inked a deal with Korea’s Doosan Heavy Industries & Construction Company and the Saudi Arabian Industrial Investments Company, Dussur.”
“This partnership aims to establish a casting and forging facility that could supply the kingdom’s manufacturers with industrial and process equipment such as valves, pumps, compressors, wellheads…. gas and wind turbines,” and other key equipment.