Saudi Aramco, Air Products, ACWA Power, and Air Products Qudra sign agreements for $12bn JV in Jazan

Saudi Aramco, Air Products, ACWA Power, and Air Products Qudra sign agreements for $12bn JV in Jazan

Saudi Aramco, Air Products, ACWA Power and Air Products Qudra announced the signing and finalisation of definitive agreements for the asset acquisition and project financing of the $12bn joint venture (JV) in Jazan Economic City. Aramco via its subsidiary Saudi Aramco Power Company (SAPCO) has a 20 per cent share in the air separation unit (ASU)/gasification/power JV; Air Products holds 46 per cent; ACWA Power 25 per cent; and Air Products Qudra has 9 per cent. Moreover, Air Products’ total ownership position is 50.6 per cent by owning an additional 4.6 per cent through Air Products Qudra. The JV is purchasing the ASUs, gasification, syngas cleanup, utilities and power assets from Aramco, while owning and operating the facility under a 25-year contract for a fixed monthly fee. Aramco will supply feedstock to the JV, which will then produce power, steam, hydrogen and other utilities for Aramco. The JV serves Aramco’s Jazan Refinery, a project to process 400,000 barrels per day of the crude oil to produce the main products such as ultra-light sulphur diesel, gasoline, and other products. With the completion of these agreements, all parties under the joint venture expect asset transfer and funding to happen during October 2021.