Aramco, Air Products (APD), ACWA Power and Air Products Qudra have announced the signing and finalization of definitive agreements for the asset acquisition and project financing of the USD 12bn air separation unit (ASU)/gasification/power joint venture (JV) in Jazan Economic City.
Aramco via its subsidiary Saudi Aramco Power Company (SAPCO) has a 20% share in the JV; Air Products 46%; ACWA Power 25%; and Air Products Qudra 9%. Moreover, Air Products’ total ownership position is 50.6% by owning an additional 4.6% through Air Products Qudra.
The JV is purchasing 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.
The JV serves Aramco’s Jazan Refinery, a megaproject to process 400,000 barrels per day of crude oil to produce the main products such as ultra-light sulphur diesel, gasoline, and other products.