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Saudi Aramco, Air Products, ACWA Power and Air Products Qudra today announced the signing of definitive agreements to finance a $ 12 billion joint venture and acquire the air separation, gasification and production unit of electricity in the economic town of Jazan.
Saudi Aramco’s participation in this joint venture is through its subsidiary, Saudi Aramco Energy Company.
Saudi Aramco owns a 20% stake in the joint venture, while Air Products owns 46%, ACWA Power 25% and Air Products Qadra owns 9% of the project. Noting that Air Products’ total ownership percentage in the project is 50.6%, compared to 4.6% via Air Products Qudra.
Under the signed agreements, the joint venture purchases electrical assets, air separation, gasification and synthesis units from Saudi Aramco, and on the basis of which the joint venture operates the respective facilities under a contract of 25 years, for a fixed monthly amount. Saudi Aramco will supply the raw material for the joint venture, which in turn will produce electricity, steam and hydrogen, as well as other products for Saudi Aramco.
The joint venture serves Saudi Aramco’s Jizan refinery to process 400,000 barrels per day of crude oil to produce key petroleum products such as low sulfur diesel, fuels and other products.
Depending on the completion of these agreements, all parties to the joint venture expect the asset transfer and financing to begin in October 2021, while Air Products intends to hold a telephone meeting with investors. at that time to inform them of the details of the project.
Senior Vice President of Refining, Processing and Marketing, Mr. Mohammed Al-Qahtani, said, “Saudi Aramco has built the world’s largest complex that operates with integrated gasification and combined cycle technology, and introduced this technology for the first time in the Kingdom to follow the industrial and economic development of the southern region. This joint venture will be a pillar of the Self-Sufficiency pillars in our megaprojects in Jazan, and it will also improve the overall value of the refinery and the power plant that operates with this technology, contributing to a qualitative leap in the region by preparing the economic city. de Jazan to more foreign direct investment and private sector participation. The participation of the Saudi Industrial Development Fund as well as 23 local and international financiers in this agreement to secure a total of $ 7.2 billion. We are optimistic that future investments will pave the way for the energy landscape in the years to come.
For his part, Air Products Chairman and CEO Seifi Qassemi said: Due to the investment this entails that will benefit and benefit Air Products. In addition to benefiting from our core capabilities as part of purification and production of syngas.We are also pleased in the first place to strengthen our relationship with Saudi Aramco, the largest company in the world, and to build a partnership with ACWA Power and Qudra Energy on this project giant that will support the Kingdom’s vision for 2030 in addition to Building partnerships that allow common development.
For his part, ACWA Power Chairman Mohamed Abunayyan said, “Today’s successful financial deal is the largest of its kind in ACWA Power’s history. We are in the process of ‘a historic project for the energy sector in the Kingdom, through which we are proud of our partnership and close cooperation with Saudi Aramco and “Air Products” aim to diversify the energy mix in the Kingdom and increase the efficiency of the sector. By drawing on the expertise and advanced capacities of all the joint-venture partners, we will make the Jazan complex an integrated gasification and combined cycle energy production project, which will be the largest of its kind in the world.We are also proud to add a new page of achievements to ACWA Power’s track record of training, refining and qualifying Saudi human talents, which helps to elevate technical skills. specialized skills and capacities to meet the needs of the sector.
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