Air Products announced financial close and the transfer of the second group of assets for the $12bn JV in Saudi Arabia.
Air Products today announced financial close and transfer of the second group of assets for the $12bn 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 percent of the JV's capital structure consists of member contributions, and the remaining 60 percent 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 Company, has a 20 percent share in the JV; Air Products 46 percent; ACWA Power 25 percent; and Air Products Qudra (a 51/49 JV between Air Products and Qudra Energy) nine percent in the JV. Air Products' total ownership position is 50.6 percent through 46 percent direct ownership and 4.6 percent through Air Products Qudra.
The JV serves Aramco's Jazan Refinery, a megaproject to process 400,000 barrels per day of the crude oil to produce main products such as ultra-light sulfur diesel, gasoline, and other products.