DHAHRAN, Kingdom of Saudi Arabia and RIYADH,
Kingdom of Saudi Arabia and
LEHIGH VALLEY, Pa., Sept. 27, 2021 /PRNewswire/ -- Aramco, Air
Products (NYSE: APD), ACWA Power and Air Products Qudra today
announced the signing and finalization of definitive agreements for
the asset acquisition and project financing of the $12 billion 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 percent share in the JV; Air Products 46 percent; ACWA Power
25 percent; and Air Products Qudra 9 percent. Moreover, Air
Products' total ownership position is 50.6 percent by owning an
additional 4.6 percent 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 the crude oil to produce the main
products such as ultra-light sulphur diesel, gasoline, and other
products.
With the completion of these definitive agreements, all parties
under the joint venture expect asset transfer and funding to occur
during the month of October 2021. Air
Products intends to conduct a public investor call at that
time.
Mohammed Al Qahtani, Senior
Vice President of Downstream, Aramco said: "We are very
pleased to reach this significant milestone. Aramco originally
built the world's largest integrated gasification combined cycle
(IGCC) complex to employ gasification technology for the first time
in the Kingdom and to keep pace with the development of the
Kingdom's Southern Province industrially and economically. This JV
is meant to be central to the self-sufficiency of our megaprojects
at Jazan. We believe 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 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."
Air Products Chairman, President and CEO, Seifi Ghasemi, said: "We are very proud
to announce the finalization of the definitive 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 Qudra Energy in
this megaproject, which supports the Kingdom's Vision 2030 and
building partnerships for mutual growth."
Mohammad Abunayyan, Chairman of ACWA Power,
said: "The successful financial agreement concluded today
is the largest agreement of its kind in ACWA Power's history and
highlights our continued firm commitment to the Kingdom's Vision
2030 and its strategic goals for the energy sector. A monumental
shift is underway in Saudi
Arabia's energy sector, and we are proud of our partnership
and close collaboration with Aramco and Air Products towards
diversifying the energy mix and increasing the efficiency of the
sector. Drawing on the pioneering expertise and capabilities of all
joint venture partners, Jazan IGCC is set to be the largest
integrated project for gasification and combined cycle energy
production in the world. Bringing the most advanced technologies to
the Kingdom, the Jazan project will push the boundaries. We are
also exceptionally proud to add to ACWA Power's track record in
training and upskilling Saudi talent to meet the requirements of
the sector."
-ENDS-
About Aramco
Aramco is a global integrated energy and chemicals company. We
are driven by the core belief that energy is opportunity. From
producing approximately one in every eight barrels of the world's
oil supply to developing new energy technologies, our global team
is dedicated to creating impact in all that we do. We focus on
making our resources more dependable, more sustainable and more
useful. This helps promote stability and long-term growth around
the world. www.aramco.com
Twitter Aramco
About Air Products
Air Products (NYSE:APD) is a world-leading industrial gases
company in operation for 80 years. Focused on serving energy,
environment and emerging markets, the Company provides essential
industrial gases, related equipment and applications expertise to
customers in dozens of industries, including refining, chemical,
metals, electronics, manufacturing, and food and beverage. Air
Products is also the global leader in the supply of liquefied
natural gas process technology and equipment. The Company develops,
engineers, builds, owns and operates some of the world's largest
industrial gas projects, including: gasification projects that
sustainably convert abundant natural resources into syngas for the
production of high-value power, fuels and chemicals; carbon capture
projects; and world-scale carbon-free hydrogen projects supporting
global transportation and the energy transition.
The Company had fiscal 2020 sales of $8.9
billion from operations in 50 countries and has a current
market capitalization of approximately $60
billion. More than 19,000 passionate, talented and committed
employees from diverse backgrounds are driven by Air Products'
higher purpose to create innovative solutions that benefit the
environment, enhance sustainability and address the challenges
facing customers, communities, and the world. For more information,
visit airproducts.com or follow us on LinkedIn, Twitter, Facebook,
or Instagram.
About ACWA Power
ACWA Power is a developer, investor and operator of power
generation, desalinated water and green hydrogen production plants.
Registered and established in 2004 in Riyadh, Saudi Arabia; ACWA Power employs about
3,500 people and is currently present in 13 countries
in the Middle East, Africa, Central
Asia and Southeast Asia.
ACWA Power's portfolio includes 64 assets with an investment
value of SAR 248 billion (USD 66.1 billion),
producing 41.6 GW of power and 6.4 million
m3/day of desalinated water delivered on a bulk basis to
address the needs of state utilities and industries on long term,
off-taker contracts under utility services outsourcing and
Public-Private-Partnership models.
ACWA Power's mission is to reliably and responsibly deliver
electricity and desalinated water at a low cost, thereby
contributing effectively to the sustainable, social and economic
development of communities and countries. ACWA Power is committed
to the values of Safety, People and Performance in operating its
business across all geographies. For more information, please
visit www.acwapower.com.
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SOURCE Air Products