Aramco, Air Products, ACWA Power and Air Products Qudra announced that they have signed agreements for the asset acquisition and project financing of an air separation unit (ASU)/gasification/power joint venture (JV) in Jazan Economic City valued at $12 billion, a press release issued by Aramco said.
According to the statement, Aramco’s subsidiary Saudi Aramco Power Company (SAPCO) holds a 20% share in the JV, Air Products has a 46% share, ACWA Power take a 25% share and Air Products Qudra has a 9% share. It elaborated also that Air Products’ total ownership position in the JV is 50.6%, as it owns an additional 4.6% through Air Products Qudra.
This collaboration will involve the ASUs, gasification, syngas cleanup, utilities and power assets being purchased from Aramco. It also entails that Aramco is the JV’s feedstock supplier. In accordance with a 25-year contract, the JV owns and operates the facility for a fixed monthly fee. Additionally, the JV will also be involved in producing power, steam, hydrogen and other utilities for Aramco.
It is worth noting that this JV served the megaproject of Aramco, Jazan Refinery. After completing the agreements, the asset acquisition is expected to be implemented during October 2021.
On this occasion, Aramco’s Senior Vice President of Downstream Mohammed Al Qahtani said “This JV is meant to be central to the self-sufficiency of our megaprojects at Jazan. We believe the JV will enhance the overall value of the refinery and integrated gasification combined cycle power plant, and aid in transforming the province by positioning Jazan Economic City for additional foreign investment and private sector involvement.”
In addition, Air Products Chairman President and CEO Seifi Ghasemi said “It is a value-creating investment for Air Products and leverages our core syngas purification and industrial gas production capabilities.”
ACWA Power Chairman Mohammad Abunayyan said “We are proud of our partnership and close collaboration with Aramco and Air Products towards diversifying the energy mix and increasing the efficiency of the sector. Drawing on the pioneering expertise and capabilities of all joint venture partners, Jazan IGCC is set to be the largest integrated project for gasification and combined cycle energy production in the world.”