Aramco, Hyundai Sign LPG-for-CO2 Deal
Saudi Aramco and South Korean oil refining group Hyundai Oilbank agreed on March 3 on the supply of liquefied petroleum gas (LPG) from Saudi Arabia to South Korea for producing blue hydrogen, the South Korean press has reported. CO2 from the process would then be transported back to Saudi Arabia, where it could be injected into mature oilfields to boost recovery while also sequestering it.
The companies did not disclose a timeframe for implementing the plan. Hyundai Oilbank, which Aramco bought a 17% stake in for $1.2bn in December 2019, will also be provided with blue ammonia, the South Korean Yonhap news agency reported on March 3. Hyundai Oilbank's parent Hyundai Heavy Industries plans to develop ships that can carry both LPG and CO2, while also working on plans for ammonia carriers and ammonia-fuelled ships.