Aramco has signed asset acquisition and project financing agreements with Air Products, ACWA Power and Air Products Qudra for a US$12bn project to produce hydrogen and power in Jazan, Saudi Arabia.
In this regard, the partners announced a joint venture (JV) in 2018. The JV aims to increase the value of the Jazan refinery and integrated gasification combined cycle power plant.
Aramco, through its subsidiary Saudi Aramco Power Company (SAPCO), holds a 20% stake in the joint venture. ACWA Power has a 25% stake in the JV, and Air Products has a 46% stake. The joint venture between Air Products and Qudra Energy, Air Products Qudra, owns a 9% stake.
The Jazan Economic City-based JV will purchase Aramco's air separation units (ASUs), gasification, syngas cleanup, utilities, and power assets, according to the asset acquisition agreement.
The joint venture will also pay a fixed monthly fee to own and operate the facility that will bundle assets under a 25-year contract
Furthermore, the JV partners expect asset transfer and funding to take place in October 2021, after the execution of the definitive agreements.
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