In a bid to focus on four key sectors, namely sustainability, technology, industrial and energy services and advanced materials, Aramco had previously drawn up a mega plan to expand its industrial investment program – Aramco Namaat – with the signing of 22 new Memoranda of Understanding (MoU) and a joint venture agreement in September 2021. Namaat means collective growth in Arabic and therefore, as the name suggests, this program aims to harness the vast opportunities available in Saudi Arabia to create new value and stimulate economic expansion and diversification.
Namaat, which has grown from 32 to 55 investments since last year, supports industrial investment partnerships, helping create jobs for Saudis and contributing to national growth and capacity building. The program aims to create opportunities for local and international businesses and to take advantage of various incentive offers through the government’s Shareek program and other initiatives.
“Namaat enables Aramco to be a catalyst for change in the Kingdom’s economy while maintaining our reliability as a global energy provider in times of market uncertainty. Our collaboration with industry leaders in areas of strategic importance to the Kingdom shows how Aramco is creating national champions who will bring long-term benefits to our value chain, our economy and our people,” said Ahmad Al-Sa’adi, senior vice president. President of Technical Services, Aramco.
Namaat’s latest phase of expansion reflects even greater integration with other enterprise lifecycle programs that aim to add value and support sustainable growth. It also represents significant progress for the program, with 19 of the 22 MoUs signed last year already bearing fruit, with a total investment of $3.5 billion.
The new agreements reinforce Aramco’s long-term growth strategy and the Kingdom’s expanding energy and chemical value chains. The expansion at Namaat aims to extend the capacity of chemicals and petrochemicals and support them with related services including energy and technology.
Saudi state-owned oil and natural gas company Saudi Arabian Oil Company, also known as Saudi Aramco, had recently announced its plan to reduce upstream carbon intensity by at least 15% by 2035. The The company’s recently released sustainability report highlights four priority areas: climate change and energy transition, safe operations and people development, minimizing environmental impact and growing societal value.
Through these initiatives, the company aims to reduce or mitigate more than 50 million metric tons of carbon dioxide equivalent (CO2e) per year by 2035 compared to the 2018 greenhouse gas emissions baseline. greenhouse (GHG). The sustainability report further outlines the ways and means by which the company proposes to address emissions while providing reliable and affordable energy solutions.
Already one of the lowest in the industry in terms of carbon intensity, Aramco aims to further reduce it by 15% to 8.7 kg of CO2 equivalent per barrel of oil equivalent (CO2e/boe), compared to a 2018 benchmark of 10.2 kg of CO2e/boe. . In addition, the Company also plans to reduce or mitigate net Scope 1 and Scope 2 GHG emissions across all of its wholly-owned operating assets, both in its upstream and downstream segments, more than 50 million metric tons of CO2e per year by 2035, compared to business as usual projections.
The Saudi oil major operates the circular carbon economy framework, which focuses on reducing, reusing, recycling and eliminating GHG emissions. By 2035, it aims to reduce and mitigate emissions through several means, including renewable investments of 14 million metric tons of CO2e reduction per year and investments in carbon capture, use and storage of 11 million metric tons of CO2e reduction per year.
In addition, the company’s energy efficiency improvements aim to achieve 11 million metric tons of CO2e reduction each year, and methane and flaring reduction of 1 million metric tons of CO2e reduction per year, thereby offsetting 16 million metric tons of CO2e mitigation per year. .
DILIP KUMAR JAI