The Saudi Basic Industries Corporation (SABIC) has awarded the contract to Germany's The Linde Group to build the world's largest CO2 purification and liquefaction plant.
The purified gaseous CO2 will be supplied through pipes to three SABIC affiliated companies for enhanced methanol and urea production, the company said in a statement.
Yousef Al-Zamel, a top SABIC official, said the project will contribute significantly to SABIC's growth strategy.
"It will add to SABIC's business portfolio of industrial gas products. This is the first of many other similar projects to be executed next year," he said.
SABIC has significant research resources with 18 dedicated technology & innovation facilities in Saudi Arabia, the US, the Netherlands, Spain, Japan, India, China and South Korea.
The company operates in more than 40 countries.