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Financial close for gasification and power JV

Published by , Senior Editor
Hydrocarbon Engineering,


Air Products has announced financial close and transfer of the second group of assets for the US$12 billion gasification and power joint venture (JV) with Aramco, ACWA Power and Air Products Qudra in the Jazan Economic City, Saudi Arabia.

The JV's purchase of this second group of assets at Jazan follows the successful asset acquisition and project financing transactions for the first group of assets completed in late October 2021. Some minor final commissioning items are expected to be completed later this calendar year.

Seifi Ghasemi, Chairman, President and CEO of Air Products, said: "We are very proud to mark the close on the second group of assets at Jazan, a world-scale project that is a perfect fit with our growth strategy and which supports the Kingdom's Vision 2030. Consistent with our commitment, this will deliver significant contributions to our earnings going forward."

Approximately 40% of the JV's capital structure consists of member contributions, and the remaining 60% consists of non-recourse project financing.

The JV has purchased ASU, 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, with Aramco supplying feedstock to the JV, and the JV producing power, steam, hydrogen and other utilities for Aramco.

Aramco, via its subsidiary Saudi Aramco Power Co., has a 20% share in the JV; Air Products 46%; ACWA Power 25%; and Air Products Qudra (a 51/49 JV between Air Products and Qudra Energy) 9%. Air Products' total ownership position is 50.6% through 46% direct ownership and 4.6% through Air Products Qudra.

The JV serves Aramco's Jazan Refinery, a megaproject to process 400 000 bpd of the crude oil to produce main products such as ultra-light sulfur diesel, gasoline, and other products.

Read the article online at: https://www.hydrocarbonengineering.com/refining/23012023/financial-close-for-gasification-and-power-jv/

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