Saudi state oil giant Aramco has signed a joint development agreement with U.S. conglomerate Honeywell and King Abdullah University of Science and Technology (KAUST) of Saudi Arabia to co-develop a novel direct Crude-to-Chemicals (CTC) technology.
The collaboration will focus on developing and scaling up the full CTC, to significantly reduce both capital and operating costs associated with CTC conversion, the Saudi university said on Thursday, as the world’s top crude oil exporter is boosting downstream operations and collaborations to lock in future demand for its oil.
The new CTC technology is designed to extract significant value from each barrel of crude oil by converting it directly into light olefins and other high-demand chemicals, KAUST said. The direct CTC process concept is expected to improve fuel efficiency, carbon utilization, and process economics—allowing for more efficient and cost-effective production at scale.
The deal is part of Aramco and Saudi Arabia’s plan to strengthen the capabilities in the petrochemicals sector.
“By harnessing the power of cutting-edge technologies, we aim to enhance energy efficiency and unlock increased value from every barrel of crude,” said Ali A. Al-Meshari, Aramco Senior Vice President of Technology Oversight & Coordination.
Earlier this year, Aramco signed a deal with China’s top refiner, Sinopec, to expand a joint venture petrochemicals complex in Saudi Arabia.
Both Aramco and Sinopec aim to diversify the use of crude oil into the production of petrochemicals, demand for which will continue to drive oil demand, while transportation fuel demand has started to level off in many major markets, including China.
Over the past two years, Aramco, the world’s biggest crude oil exporter and largest oil company, has signed agreements with China’s Rongsheng Petrochemical and Hengli Group to advance talks on cooperation in the refining and petrochemical sectors in China and Saudi Arabia.
In recent years, the Saudi oil giant has been pursuing deals to expand its international downstream presence, especially in demand centers such as Asia.
By Tsvetana Paraskova for Oilprice.com
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