August 12, 2018-Saudi Aramco (NYSE: APD), Air Products and ACWAPower announce the signing of an investment letter of intent to establish a gasification / power plant in Jazan Economic City (JEC), Saudi Arabia Joint venture.
The joint venture will purchase gasification assets, power groups and related utility companies from Saudi Aramco, worth more than $ 8 billion.
These assets are currently under construction and, once successfully launched, will be handed over to the joint venture in 2019.
The joint venture company will charge a fixed monthly fee and operate it under a 25-year contract. Saudi Aramco will provide raw materials for the joint venture, which will produce power, hydrogen and other utilities for Saudi Aramco. Air Products will own at least 55% of the joint venture and Saudi Aramco and ACWA Power will own the remaining shares.
The joint venture is established in a public-private partnership model to develop and operate key infrastructure assets in the region.
The joint venture will increase employment opportunities, transfer state-of-the-art technologies to Saudi Arabia, and enable Saudi talent to use these technologies for the first time.
The joint venture will serve Saudi Aramco's Jazan Refinery and Jazan Economic City terminals, a large-scale project that will process heavy and medium crude oils to produce liquefied petroleum gas, sulfur, asphalt, benzene and xylenes, with daily additions 400,000 barrels of refining capacity.
Abdulaziz M. Al-Judaimi, Saudi Aramco's senior vice president for downstream operations, said: "The gasification / electricity joint venture will be the core of our self-sufficiency in Jazan's large-scale projects. The joint venture will increase refinery and integrated gasification combined cycle power generation The overall value of the plant and help transform the area by positioning the joint venture as additional foreign direct investment and private sector involvement. "
Air Products Chairman, President and Chief Executive Officer, SeifiGhasemi said, "We are very honored to have this great opportunity to work with Saudi Aramco, the world's largest company, and ACWA Power, the leading private power producer in the Middle East, to expand our Participation in this large-scale project. Earlier this year we obtained a patent for Shell's liquid gasification technology, which is also the core technology of the Jazan gasification facility. Based on the success of our Lu'An project in China, this new project further Expanded Air Products' leadership to supply syngas to large companies around the world.
We thank Saudi Aramco for the continued trust in us, first of all for granting us air separation units, and now we are moving towards expanding Jazan's supply. "
Mohammad avayyan, Chairman of ACWA Power, added: "ACWA Power is committed to extending the public-private partnership model to the power sector. ACWA Power plays a significant role in the power industry in Saudi Arabia and welcomes opportunities to assist in further developing the Jazan economy. In addition, this collaboration is the result of companies recognizing the need for innovative new structures as part of their 2030 vision. "