Air Products said today that it is in final negotiations to form a joint venture (JV) with Saudi Aramco, ACWA Power, and Air Products Qudra, a JV owned by Air Products and Qudra Energy, to acquire the gasification, power, and industrial gas assets at Jazan Economic City, Saudi Arabia, representing a total investment value of about $11.5 billion. Air Products’ confirmation follows an announcement made today by Aramco at the Future Investment Initiative currently under way in Riyadh, Saudi Arabia.
Aramco says the Jazan Power JV will be 46% owned by Air Products, 25% by ACWA Power, 20% by Aramco, and 9% by Air Products Qudra. It is one of eight memoranda of understanding that Aramco signed today. Another is with Air Products Qudra to discuss the establishment of an industrial gases JV.
Air Products says it expects to close on the transaction by the end of 2019. It will provide additional comments at its fourth-quarter earnings call on 7 November and further details about the project following financial close.
Air Products earlier this year marked mechanical completion of an industrial gases complex at Jazan. The project, the largest industrial gas complex in the world, includes multiple air separation units to serve Aramco’s Jazan oil refinery and power plant. The units will supply 20,000 metric tons/day of oxygen and 55,000 metric tons/day of nitrogen.
Aramco’s Jazan megaproject, starting up this year, will have 400,000 b/d of refining capacity and includes benzene and para-xylene production.
By Natasha Alperowicz
Source: Chemical Week
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