Saudi Aramco has signed one agreement and nine Memorandums of Understanding (MoUs) with key Korean organisations, all of which aim to enhance the company’s downstream strategy and promote the development of low-carbon energy solutions while also providing new financing possibilities.
The agreements were signed at the Saudi-Korean Investment Forum in Riyadh, which was attended by HRH Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Deputy Prime Minister and Minister of Defense, President of the Republic of Korea, H.E. Moon Jae-in, Aramco President and CEO Amin H. Nasser, and senior corporate executives from both nations.
The new joint venture aims to produce 60,000 tonnes per year
Aramco has struck a deal with Doosan Heavy Industries & Construction Company of Korea, and Dussur, the Saudi Arabian Industrial Investments Company. To increase local manufacturing, this partnership plans to construct a casting and forging plant that can supply the Kingdom’s manufacturers with industrial and process equipment such as valves, pumps, compressors, wellheads, flanges, heat exchangers, and gas and wind turbines.
The new joint venture aims to produce 60,000 tonnes per year, mostly through sand-casting and open-die forging methods, with machining skills thrown in for good measure. It also has the ability to provide original equipment manufacturers (OEMs) in the rig, drilling, maritime, and engine industries, with the potential to expand into the wider GCC market.
The companies also intend to investigate the viability of turning ammonia into hydrogen
KEPCO, S-Oil, POSCO, Hyundai Oilbank, H2Korea, and Lotte Chemical have signed MoUs to investigate future partnerships in the supply, transportation, utilization, and certification of hydrogen and ammonia. The companies also intend to investigate the viability of turning ammonia into hydrogen, a process known as ammonia back-cracking.
The agreements aim to strengthen Aramco’s collaboration with prominent Korean companies to open up new opportunities in advanced technology, manufacturing, and finance, demonstrating Aramco’s commitment to driving development through global alliances.