Sector News

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

August 14, 2018
Energy & Chemical Value Chain

Saudi Aramco, Air Products and ACWA Power signed on Sunday 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 $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.

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.

“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,” it added.

The refinery on the Red Sea is part of a plan to revive the southwestern region by building an economic city which will help create thousands of jobs.

Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), has a total shareholding of 25 percent in Riyadh-based ACWA Power, a developer and operator of power and water plants.

By Ghaida Ghantous

Source: Reuters

comments closed

Related News

December 3, 2023

CF Industries completes acquisition of Waggaman ammonia production facility

Energy & Chemical Value Chain

CF Industries Holdings, Inc. (NYSE: CF) today announced that it has closed its acquisition of Incitec Pivot Limited’s (“IPL”) ammonia production complex located in Waggaman, Louisiana. Under the terms of the agreement, CF Industries purchased the Waggaman ammonia plant and related assets for $1.675 billion, subject to adjustments.

December 3, 2023

Virent and Johnson Matthey: behind the pioneering technology that enabled the first 100% SAF trans-atlantic flight

Energy & Chemical Value Chain

The Virgin Atlantic flight was powered entirely by SAF, that was a drop-in replacement for conventional jet fuel, but made solely from sustainable feedstocks. This was enabled through the inclusion of a new bio-based aromatic jet fuel blending component.

December 3, 2023

COP28: Cepsa, C2X eye €1B investment in green methanol plant at Huelva, Spain

Energy & Chemical Value Chain

Cepsa SA (Madrid) has agreed a deal with C2X, an independent firm owned by AP Moller Holding with AP Moller-Maersk as minority owner, to develop a 300,000 metric tons per year renewable methanol plant at Huelva, Spain.

How can we help you?

We're easy to reach