The world’s largest industrial gas complex will be built, owned and operated by Air Products and ACWA Holding, as a joint venture (JV), in Saudi Arabia.
The complex will supply a total of 75,000 metric tons per day of industrial gas, 20,000 oxygen and 55,000 nitrogen, for 20 years to Saudi Aramco’s refinery being built in Jazan, Saudi Arabia.
The industrial gas complex will be designed and built by Air Products using its proprietary technology. Once built, this facility will be owned by a JV of Air Products (25%) and ACWA Holding (75%).
“We at Air Products are very excited about being awarded this very significant project. We consider it an honor and a privilege to use our proprietary technology to design and build the world’s largest industrial gas complex for an outstanding client and the largest company in the world, Saudi Aramco. We are very pleased that Saudi Aramco trusts Air Products and our partner ACWA Holding to economically and reliably supply the critical gases needed for its refinery in Jazan,” said Seifi Ghasemi, Chairman, President and Chief Executive Officer at Air Products.
ACWA Holding Chairman, Mohamed Abunayan, also added, “This award also demonstrates the value of our outstanding relationship with our partner in ACWA Holding, which has worked so closely with us to develop this great project.”
“We are proud and thrilled to be selected as the partner of choice by Saudi Aramco to develop this world scale industrial gases project. This mammoth undertaking complements the portfolio of power, water, renewable energy, district cooling, integrated waste and resource recovery projects of ACWA Holding as the premier infrastructure developer in the region. The partnership with Air Products, the world leader in the field, is further testimony to ACWA Holding’s superior capability to develop large and critical infrastructure projects in Saudi Arabia and the region.”
Speaking on a conference call about the deal, Ghasemi confirmed details about the JV - including his hopes that this is the start of more projects in the area for Air Products.
He stated, “The total investment is $2.1bn - which includes financial charges. For Air Products’ 25% of the JV, that is made up of about 20% equity and 80% debt - translated this is about $100m equity.”
“We will build the facility required to produce the gases needed by Saudi Aramco, with the start-up expected in late 2018 to early 2019. As already stated this will be the largest industrial gas complex in the world.”
“To put this into perspective, it will require 500mW to operate and will consist of six trains in the project. This deal is the result of 8-9 months of hard work negotiating and we should begin construction at the start of Fiscal 2016.”
”This project will give us the critical mass to do other projects in the region. We will look to be a player in this market in the region by having a bigger presence through our involvement with this project.”
Ghasemi also confirmed there were other companies bidding competitively for involvement in this JV.