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Saudi Aramco has signed a joint development agreement with US industrial group Honeywell (HON.O) and King Abdullah University of Science and Technology (KAUST) to advance a new technology for converting crude oil directly into chemicals.
The deal aims to cut the cost of crude-to-chemicals (CTC) processes and increase the value extracted from each barrel of oil by producing light olefins and other high-demand products. The companies said the approach could improve fuel efficiency, carbon utilisation and overall process economics.
“This collaboration with Honeywell UOP and KAUST furthers Aramco’s efforts to drive innovation and shape the future of petrochemicals,” said Ali A Al-Meshari, Aramco’s senior vice president for technology oversight and coordination.
“By harnessing cutting-edge technologies, we aim to enhance energy efficiency and unlock increased value from every barrel of crude.”
Honeywell exec calls deal a key move to build CTC tech
Rajesh Gattupalli, president of Honeywell UOP, called the agreement “a defining moment” in the evolution of CTC technology, adding that the partnership was expected to reduce emissions and strengthen Saudi Arabia’s position in the global chemicals market.
KAUST’s participation brings academic research into the collaboration. Ian Campbell, senior vice president at KAUST’s National Transformation Institute, said the project was an example of how science could be translated into industrial applications to support the kingdom’s innovation-driven economy.
The three organisations said the initiative supports Saudi Arabia’s Vision 2030, which seeks to diversify the economy beyond oil by developing downstream industries and building national technology capabilities.