World class industrial gas production facilities and distribution networks are set to be established in the industrial cities of Royal Commission as part of a new deal.
The Royal Commission for Jubail and Yanbu and Air Products Qudra signed a Memorandum of Understanding (MoU) which sets out preliminary framework details to establish a hydrogen refuelling economy in the Kingdom, achieve higher values for off-gases, introduce new technologies to convert low-value feedstocks into high-value products, establish a helium recovery network, and expand the carbon-dioxide capture and re-use economy in the Kingdom of Saudi Arabia.
The MoU supports the Royal Commission’s strategy to promote direct investments, diversify and enhance the Kingdom’s economy, improve the services to its clients to help improve their business performance, and maximise localisation within the Kingdom of Saudi Arabia.
Air Products Qudra is a regional development and investment joint venture between Air Products and Qudra Energy, a subsidiary of Vision Invest.
Seifi Ghasemi, Chairman, President and CEO of Air Products, said, “It is an honour to collaborate with the Royal Commission to explore the business case to invest, build, own and operate world-scale, transformative industrial gas facilities at Jubail and further support the creation of a world-leading downstream sector in Saudi Arabia.”
Dr. Samir Serhan, Chairman of Air Products Qudra and Executive Vice-President of Air Products, added, “We have already started the plan to kick off our Phase 1 investments to build world-scale industrial gas production units and distribution networks in Jubail.”
“We look forward to bringing our full suite of capabilities to these projects and supporting essential sustainable energy production in these Industrial Cities.”
According to gasworld’s Business Intelligence Manager Karina Kocha, “Vision 2030, the Kingdom of Saudi Arabia’s (KSA) programme of long-term development, provides the development of the non-oil sectors, attracting foreign direct investment and growing contribution of renewables to national energy mix.”
“Programme goals are to position KSA as a global logistic hub and further integrate the Saudi economy regionally and globally, developing local companies into regional and global leaders.”
“The new deal looks as an anticipated step in the course of the Vision 2030 implementation and will cause positive impact on the industrial gas market, introducing new technologies and developing added value products.”
“We estimate KSA industrial gas equals to about $795m in 2018, we expect the market will be nearly doubled after commissioning Air Products Quadra plants in Jazan”.