Saudi Aramco announced it had signed a term sheet to form a Gasification and Power joint venture (JV) located at Jizan Economic City (JEC) in Saudi Arabia.
The JV will own and operate the facility under a 25-year contract and Aramco will supply feedstock to the JV, and it will produce power, hydrogen and other utilities for the company.
Air Products will own at least 55 percent of the venture, with Aramco and ACWA Power owning the remaining.
The consortium will increase job opportunities and transfer the most advanced technologies in this field to the Kingdom, and enable Saudi talent to employ this technology for the first time.
The JV will serve Aramco’s Jizan Refinery and terminal at JEC 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.
Saudi Aramco Senior Vice President of Downstream Abdulaziz al-Judaimi announced that the venture will be central to the self-sufficiency of the company’s megaprojects at Jizan.
Judaimi added that it will enhance the overall value of the refinery and integrated gasification combined cycle power plant, and aid in transforming the province by positioning JEC for additional foreign direct investment and private sector involvement.
Air Products Chairman, President and CEO, Seifi Ghasemi, expressed his company’s honor to be given this outstanding opportunity to expand its involvement in this megaproject in partnership with Aramco and ACWA Power.
“Building on the success of our Lu’An project in China, this new project further extends Air Products’ leadership position supplying syngas to major companies around the world. We appreciate the trust that Saudi Aramco continues to place in us, first in awarding us the air separation unit, and now moving toward an expanded scope of supply at Jizan,” he noted.
Ghasemi noted that the JV furthers the efforts of the Public Private Partnership (PPP) model to develop critical infrastructure assets in the region, a key component of the Kingdom’s Saudi Vision 2030.
As for ACWA Power Chairman, Mohammad Abunayyan, he asserted that his company is committed to the expansion of the PPP model into the power sector.
Abunayyan explained that ACWA Power plays an important role in the power sector in Saudi Arabia and welcomes the opportunity to assist in the further development of Jizan's economic corridor.
“Furthermore, our collaboration with industry-leading companies, Saudi Aramco and Air Products, will stimulate growth and innovation, aligned with Saudi Vision 2030,” he concluded.
