Agreement to Finance $12Bln Joint Venture to Acquire Southern Saudi Arabia’s Power Unit

power, aramco, percent, venture, saudi,
Saudi Arabia
  • Date: 28-Sep-2021
  • Source: Asharq AL-awsat
  • Sector:Oil & Gas
  • Country:Saudi Arabia
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Agreement to Finance $12Bln Joint Venture to Acquire Southern Saudi Arabia’s Power Unit

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Saudi Aramco, Air Products, ACWA Power and Air Products Qudra announced the signing of final agreements to finance a joint venture worth 45 billion riyals (USD 12 billion), for the acquisition of a power unit for air separation (ASU), gasification and electricity production in Jazan Economic City.

Aramco, via its subsidiary Saudi Aramco Power Company (SAPCO), has a 20 percent share in the Joint Venture, while Air Products will acquire 46 percent, ACWA Power 25 percent and Air Products Qudra 9 percent.

Air Products’ total ownership position is 50.6 percent by owning an additional 4.6 percent through Air Products Qudra.

According to the agreement, the Joint Venture (JV) purchases the ASUs, gasification, syngas cleanup, utilities and power assets from Aramco. The JV owns and operates the facility under a 25-year contract for a fixed monthly fee. Aramco will supply feedstock to the JV, and the JV will produce power, steam, hydrogen and other utilities for Aramco.

With the completion of the agreements, all parties to the JV expect the transfer of assets and financing to begin next October, while Air Products intends to hold a telephone meeting with investors at that time to inform them of the project’s details.

Senior Vice President of Refining, Processing