TenarisSaudiSteelPipes Secures $242 Million Contract with Aramco for Jubail Carbon Capture Hub
Saudi Arabia’s leading pipemaker, TenarisSaudiSteelPipes, formerly known as Saudi Steel Pipe Co. or SSP, has entered into a landmark agreement with Saudi Aramco, the world’s largest oil and gas company, for the supply of Longitudinally Submerged Arc Welded pipes valued at SAR 910 million (approximately $242.66 million). The pipes will be utilized in Aramco's ambitious carbon capture and storage hub in Jubail, a crucial project designed to help the Kingdom meet its sustainability goals.
This contract marks a significant milestone for TenarisSaudiSteelPipes, reflecting both the growing demand for advanced piping solutions in energy infrastructure and Saudi Arabia’s commitment to environmental sustainability through large-scale carbon capture initiatives.
The Jubail Carbon Capture and Storage Project
The Jubail CCS hub is one of Saudi Arabia’s flagship initiatives to combat climate change. The hub is designed to capture and store carbon emissions on a massive scale, with an ambitious target of capturing 9 million metric tons of carbon emissions annually by 2027. This project is in line with the Kingdom's Vision 2030 goals, which include reducing carbon emissions and diversifying the economy away from oil dependence.
The hub will play a pivotal role in enabling Saudi Arabia to meet its carbon neutrality targets and contribute to the global effort to mitigate the effects of climate change. By using the LSAW pipes supplied by TenarisSaudiSteelPipes, Aramco aims to enhance the efficiency and sustainability of the carbon storage process, ensuring safe and long-term storage of carbon emissions.
The Contract Details and Scope
Under the terms of the contract, TenarisSaudiSteelPipes’ subsidiary, Global Pipe Company, will provide Aramco with high-quality LSAW pipes, which are essential for oil and gas transportation, especially in projects involving harsh environmental conditions. These pipes will be integral to the CCS infrastructure at the Jubail hub.
The supply of the pipes will occur over a period of up to 15 months, with production timelines and logistics coordinated to meet the hub's construction schedule. This collaboration will see TenarisSaudiSteelPipes support one of the most significant CCS projects in the region.
The financial impact of this contract is anticipated to be reflected in the company’s revenue during the second half of 2025 and the first half of 2026. This timeframe aligns with the construction and operational phases of the Jubail CCS hub, allowing the pipes to be utilized once the infrastructure is ready for operation.
Significance of the Deal for TenarisSaudiSteelPipes
This contract is a major achievement for TenarisSaudiSteelPipes, as it solidifies the company's position as a key supplier for large-scale energy and environmental projects. By securing such high-profile contracts with a global leader like Aramco, TenarisSaudiSteelPipes demonstrates its capability to meet the rigorous demands of the energy sector and contribute to large-scale sustainability efforts.
The deal also marks a strategic partnership between two giants in the Saudi energy sector, reflecting their shared goals of advancing technological innovation and reducing carbon footprints. For TenarisSaudiSteelPipes, this agreement could pave the way for further collaboration with Aramco in future projects related to energy, sustainability, and infrastructure development.
The Role of LSAW Pipes in Carbon Capture Infrastructure
Longitudinally Submerged Arc Welded (LSAW) pipes are essential components in many large-scale energy projects, particularly those that involve transporting fluids under high pressure or across long distances. LSAW pipes are known for their strength, reliability, and ability to withstand extreme environmental conditions, making them ideal for use in energy infrastructure such as pipelines, storage facilities, and, in this case, carbon capture systems.
For the Jubail CCS project, LSAW pipes will provide the durability and safety required to transport captured carbon dioxide to underground storage sites, ensuring that the carbon emissions are securely stored and cannot escape into the atmosphere.
TenarisSaudiSteelPipes: A Leader in the Middle East’s Energy Infrastructure
As a subsidiary of Tenaris, a global leader in the manufacturing of steel pipes for the energy industry, TenarisSaudiSteelPipes is well-equipped to meet the growing demand for high-quality piping solutions in the Middle East. The company has built a strong reputation in the region, particularly in the oil and gas sectors, where infrastructure projects require state-of-the-art products that meet international standards.
This contract with Aramco is another testament to the company’s expertise and its strategic importance within the Kingdom’s energy and infrastructure development initiatives. It also highlights the increasing role of the private sector in supporting national sustainability goals and the diversification of energy resources.
Future Prospects for Carbon Capture and Saudi Arabia’s Energy Transition
As the global energy landscape evolves, carbon capture and storage technologies are becoming increasingly vital for mitigating climate change. Saudi Arabia, with its large oil and gas reserves, is positioning itself as a leader in carbon management technologies, and the Jubail CCS hub is just the beginning.
The country’s Vision 2030 plan envisions significant investments in clean energy technologies, and projects like the Jubail CCS hub are central to these efforts. As TenarisSaudiSteelPipes continues to supply essential materials for these initiatives, the company is well-placed to capitalize on the growing demand for energy infrastructure and sustainability solutions.
With Saudi Arabia’s commitment to carbon neutrality and ongoing infrastructure projects, TenarisSaudiSteelPipes is poised for continued growth, both in the region and globally. This contract with Aramco not only secures the company’s role in one of the Kingdom’s most important sustainability projects but also underscores the expanding opportunities within the Middle Eastern energy sector.
