Air Products, Allentown, Pa., has signed and finalized definitive agreements for the asset acquisition and project financing of the $12 billion air separation unit (ASU)/gasification/power joint venture (JV) with Aramco and ACWA Power in Jazan Economic City.
Aramco via its subsidiary Saudi Aramco Power Company (SAPCO) has a 20% share in the JV; Air Products 46%; ACWA Power 25%; and Air Products Qudra 9%. Moreover, Air Products’ total ownership position is 50.6% by owning an additional 4.6% through Air Products Qudra.
The JV is purchasing the ASUs, 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. Aramco will supply feedstock to the JV, and the JV will produce power, steam, hydrogen, and other utilities for Aramco.
The JV serves Aramco’s Jazan Refinery, a megaproject to process 400,000 barrels per day of crude oil to produce the main products such as ultra-light sulfur diesel, gasoline, and other products.
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