Air Products, Saudi Aramco and ACWA Power have today (27th Sep) finalised a definite agreement for the acquisition and project financing of a $12bn air separation unit (ASUs)/gasification/power joint venture in Jazan Economic City, Saudi Arabia.

First announced in 2019, the joint venture will purchase ASUs, gasification, syngas clean-up, utilities and power assets from Aramco. Through its Saudi Aramco Power subsidiary, Aramco has a 20% share in the joint venture.

ACWA Power holds a 25% share in the joint venture, Air Products 46%, and Air Products Qudra has a 9% share. Altogether, Air Products’ total ownership position is 50.6%, making it the majority shareholder.

Now finalised, the joint venture owns and operates the acquired facility under a 25-year contract for a fixed monthly fee. Aramco will supply feedstock to the joint venture, and the joint venture will produce power, steam and hydrogen and other utilities for Aramco.

On the completion, Air Products Chairman, President and CEO, Seifi Ghasemi, said, “We are very proud to announce the finalisation of the definite agreements for this complex transaction and now move forward.”

“This is a perfect fit with our growth strategy. It is a value-creating investment for Air Products and leverages our core syngas purification and industrial gas production capabilities.

“Most importantly, it is a privilege to further strengthen our relationship with Aramco, the world’s largest company, and to partner with ACWA Power and Quadra Energy in this megaproject, which supports the Kingdom’s Vision 2030 and building partnership for mutual growth.” 

Mohammed Al Qahtani, Senior Vice-President of Downstream of Aramco, added, “This joint venture is meant to be central to the self-sufficiency of our megaprojects at Jazan. We believe the joint venture 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 fact, we are pleased to have the Saudi Industrial Development Fund (SIDF) and 23 local and international lenders engaged in this transaction securing a total of $7.2bn. We are optimistic that future investment offers the potential to be a game-changer in the years ahead.”