Saudi Arabia's oil giant Aramco inked a shareholders' agreement with Linde plc (NASDAQ:LIN) and Schlumberger N.V. (NYSE:SLB) to establish a Carbon Capture and Storage (CCS) hub, which is set to become one of the largest in the world.

Aramco will hold a 60% equity stake in the project, while Linde and SLB will each own 20%.

The CCS hub represents a pivotal step in Aramco's emissions mitigation strategy.

Phase one of the hub in Jubail, Eastern Province, Saudi Arabia, aims to capture and store up to nine million metric tons of CO2 annually, with construction slated for completion by the end of 2027.

Future phases are expected to further increase capacity, aligning with Aramco's goal of achieving net-zero Scope 1 and 2 emissions across its wholly-owned operated assets by 2050.

Ashraf Al Ghazzawi, Aramco EVP of Strategy & Corporate Development, said, "Aramco's collaboration with SLB and Linde demonstrates the importance of global partnerships in driving technological innovation, reducing emissions from conventional energy sources and enabling new, lower-carbon energy solutions. This CCS hub is among several programs that will enable us to meet rising demand for affordable, reliable, and more sustainable energy."

Oliver Pfann, Linde EVP EMEA, stated, "Carbon capture and sequestration is essential for achieving the Kingdom's emission reduction targets. Linde is proud to collaborate with Aramco and SLB, contributing Linde's innovative technology and experience in delivering world-scale decarbonization projects."

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