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Aramco, Air Products, ACWA to form JV in Saudi Arabia

Gasoil News - Published on Thu, 16 Aug 2018

Image Source: aawsat.com
Reuters reported that Saudi Aramco, Air Products and ACWA Power signed an agreement outlining terms for setting up a gasification/power joint venture in Saudi Arabia with assets bought from the state energy giant. "The JV will purchase the gasification assets, power block and the associated utilities from Saudi Aramco for approximately USD 8 billion," they said a statement.

According to the term sheet, U.S.-based Air Products will own at least 55 percent of the joint venture, to be set up in Jazan Economic City (JEC), with Saudi Aramco and ACWA Power owning the balance, the statement said.

It said that the joint venture will own and operate the facility under a 25-year contract for a fixed monthly fee. Saudi Aramco will supply feedstock and the joint venture will produce power, hydrogen and other utilities for Aramco.

The statement said the assets are currently under construction and would be transferred to the joint venture upon start-up, scheduled in 2019.

It added that "The JV will serve Saudi Aramco's Jazan Refinery and terminal at JEC, a megaproject that will process heavy and medium crude oil to create liquefied petroleum gas, sulfur, asphalt, benzene and paraxylene, and add 400,000 barrels per day of refining capacity."

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Posted By : Nanda Koijam on Thu, 16 Aug 2018
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