Saudi Aramco, Air Products, ACWA Power and Air Products Qudra announced today the signing of definitive agreements to finance a $12 billion joint venture.
Saudi Aramco’s participation in this joint venture comes through its subsidiary, Saudi Aramco Energy Company.
Saudi Aramco owns a 20% stake in the joint venture, while Air Products owns 46%, and Air Products’ total ownership percentage in the project is 50.6%, compared to its 4.6% ownership through Air Products Qadra.
Under the signed agreements, the joint venture will purchase energy assets, air separation, gasification, and synthesis gas purification units from Saudi Aramco.
Accordingly, the joint venture operates the respective facilities under a 25-year contract, for a fixed monthly fee.
Saudi Aramco will supply the feedstock to the joint venture, which will, in turn, produce electricity, steam, and hydrogen, as well as other products for Saudi Aramco.
The joint venture serves Saudi Aramco’s Jizan Refinery to process 400,000 barrels per day of crude oil to produce key petroleum products such as low-sulfur diesel, motor fuel, and other products.