RIYADH: A consortium of Saudi Aramco, Air Products, ACWA Power and Air Products Qudra on Monday signed asset acquisition and project financing agreements for a $12 billion air separation unit, gasification and power joint venture in Jazan Economic City, said a press release.

“This JV is meant to be central to the self-sufficiency of our megaprojects at Jazan,” said Mohammed Al-Qahtani, senior vice president of downstream, Saudi Aramco.

It serves Aramco’s Jazan Refinery, a megaproject to process 400,000 barrels per day of the crude oil to produce the main products such as ultra-light sulfur diesel, gasoline, and other products.

All parties under the joint venture expect asset transfer and funding to occur during October 2021. Air Products intends to conduct a public investor call at that time.

Seifi Ghasemi, Air Products chairman, president and CEO, said the project is a “perfect fit with our growth strategy.”

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.

Mohammad Abunayyan, chairman of ACWA Power, said:  “Jazan IGCC is set to be the largest integrated project for gasification and combined cycle energy production in the world.”

Aramco via its subsidiary Saudi Aramco Power Co. has a 20 percent share in the JV; Air Products 46 percent; ACWA Power 25 percent; and Air Products Qudra 9 percent. Air Products’ total ownership position is 50.6 percent by owning an additional 4.6 percent through Air Products Qudra.