Saudi Aramco, Air Products and ACWA Power have signed a term sheet to form a gasification and power joint venture (JV) at Jazan Economic City (JEC) in Saudi Arabia
The joint venture will purchase the assets, power block and the utilities from Saudi Aramco for US$8bn. The assets are under construction and will be transferred to the JV in 2019.
The JV has a 25-year contract for a fixed monthly fee. They will get the feedstock from Saudi Aramco to produce power, hydrogen and other utilities. Air Products will own 55 per cent of the JV, with Saudi Aramco and ACWA Power owning the balance.
The JV expands upon the importance and recognition that basic infrastructure assets in the region are being developed and operated under the Public Private Partnership (PPP) model.
The consortium will increase job opportunities and will send its people to the kingdom and will enable Saudi Arabia to use its technology for the first time.
Abdulaziz M Al-Judaimi, senior vice-president at Saudi Aramco, said, “The gasification/power JV will be central to the self-sufficiency of our megaprojects at Jazan. The JV will enhance the overall value of the refinery and integrated gasification combined cycle power plant, and aid in transforming the province by positioning JEC for additional foreign direct investment and private sector involvement.”
Seifi Ghasemi, president and CEO at Air Products, noted that the JV furthers the efforts of the PPP model to develop critical infrastructure assets in the region which is an important component of the kingdom’s Saudi Vision 2030.
“Building on the success of our Lu’An project in China, this new project further extends Air Products’ leadership position supplying syngas to major companies around the world. We appreciate the trust that Saudi Aramco continues to place in us, first in awarding us the air separation unit, and now moving toward an expanded scope of supply at Jazan,” he added.
