LEHIGH
VALLEY, Pa., Jan. 20,
2023 /PRNewswire/ -- Air Products today announced
financial close and transfer of the second group of assets for the
$12 billion gasification and power
joint venture (JV) with Aramco, ACWA Power and Air Products Qudra
in the Jazan Economic City ("Jazan"), Saudi Arabia.
The JV's purchase of this second group of assets at Jazan
follows the successful asset acquisition and project financing
transactions for the first group of assets completed in late
October 2021. Some minor final
commissioning items are expected to be completed later this
calendar year.
Seifi Ghasemi, Chairman,
President and CEO of Air Products, said, "We are very proud to mark
the close on the second group of assets at Jazan, a world-scale
project that is a perfect fit with our growth strategy and which
supports the Kingdom's Vision 2030. Consistent with our commitment,
this will deliver significant contributions to our earnings going
forward."
Approximately 40 percent of the JV's capital structure consists
of member contributions, and the remaining 60 percent consists of
non-recourse project financing.
About the Jazan JV
The JV has purchased ASU, 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, with
Aramco supplying feedstock to the JV, and the JV producing power,
steam, hydrogen and other utilities for Aramco.
Aramco, via its subsidiary Saudi Aramco Power Company, has a 20
percent share in the JV; Air Products 46 percent; ACWA Power 25
percent; and Air Products Qudra (a 51/49 JV between Air Products
and Qudra Energy) nine percent in the JV. Air Products' total
ownership position is 50.6 percent through 46 percent direct
ownership and 4.6 percent through Air Products Qudra.
The JV serves Aramco's Jazan Refinery, a megaproject to process
400,000 barrels per day of the crude oil to produce main products
such as ultra-light sulfur diesel, gasoline, and other
products.
About Air Products
Air Products (NYSE:APD) is a world-leading industrial gases company
in operation for over 80 years focused on serving energy,
environmental, and emerging markets. The Company has two growth
pillars driven by sustainability. Air Products' base business
provides essential industrial gases, related equipment and
applications expertise to customers in dozens of industries,
including refining, chemicals, metals, electronics, manufacturing,
and food. The Company also develops, engineers, builds, owns and
operates some of the world's largest industrial gas and
carbon-capture projects, supplying world-scale clean hydrogen for
global transportation, industrial markets, and the broader energy
transition. Additionally, Air Products is the world leader in the
supply of liquefied natural gas process technology and equipment,
and globally provides turbomachinery, membrane systems and
cryogenic containers.
The Company had fiscal 2022 sales of $12.7 billion from operations in over 50
countries and has a current market capitalization of about
$70 billion. More than
21,000 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 reimagine what's possible to address the
challenges facing customers, communities, and the world. For more
information, visit www.airproducts.com or follow us on
LinkedIn, Twitter, Facebook or Instagram.
Cautionary Note Regarding Forward-Looking Statements: This
release contains "forward-looking statements" within the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements are based on management's
expectations and assumptions as of the date of this release and are
not guarantees of future performance. While forward-looking
statements are made in good faith and based on assumptions,
expectations and projections that management believes are
reasonable based on currently available information, actual
performance and financial results may differ materially from
projections and estimates expressed in the forward-looking
statements because of many factors, including the risk factors
described in our Annual Report on Form 10-K for the fiscal year
ended September 30, 2022 and other
factors disclosed in our filings with the Securities and Exchange
Commission. Except as required by law, we disclaim any obligation
or undertaking to update or revise any forward-looking statements
contained herein to reflect any change in the assumptions, beliefs
or expectations or any change in events, conditions or
circumstances upon which any such forward-looking statements are
based.
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SOURCE Air Products