Petro Rabigh inks deal with Gulf Cryo to build CO2 capturing facility

Logo of Rabigh Refining and Petrochemical Co.

Rabigh Refining and Petrochemical Co. (Petro Rabigh) signed an agreement with Gulf Cryo to capture CO2 emissions from the mono ethylene glycol (MEG) plant at Petro Rabigh industrial complex, according to a bourse filing.

The Saudi petrochemical company will kick off the project by August 2022, with the trial operations expected by 2023, the statement added.

Gulf Cryo will build and operate a state-of-the-art CO2 capturing plant, which will be fully operative by Q2 2023. The plant will be the first CO2 capturing plant in the Western Region of Saudi Arabia.

A portion of the total captured highly purified gas will be transformed into a food-grade quality with a capacity of 300 metric tonnes/day via a pipeline extended to Petro Rabigh. The remaining portion will be provided in a liquid form to industrial end-users. This will help replace the fossil fuel burning stations to create an environmentally-friendly economy.

In addition, the captured purified CO2 emissions will be utilized in oil and gas, desalination, food and beverage, cement, and agriculture industries.

The deal will pave the way for a new strategic cooperation, which will boost the use of the local content, secure resilient supply chains, and maintain a sustainable work environment, in line with Saudi Vision 2030.

The relevant financial impact will appear in 2023, which will be determined later, the statement said.