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Firms To Acquire Assest Set For IGCC Projects | |
| Sumita Pawar |
Air Products said that the second group of assets for the $12 billion gasification and power joint venture (JV) with Aramco, ACWA Power, and Air Products Qudra in the Jazan Economic City (Jazan), Saudi Arabia, have been transferred and the financial close has been reached.
According to the report, the JV bought this second group of assets at Jazan after successfully buying and financing the first group of assets in late October 2021.
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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 that supports the Kingdom’s Vision 2030. Consistent with our commitment, this will deliver significant contributions to our earnings going forward.
The report said that about 40% of the JV's capital structure comes from member contributions and that the other 60% comes from non-recourse project financing.
The JV has purchased ASU, gasification, syngas cleanup, utilities, and power assets from Aramco.
Under a 25-year contract, the JV owns and runs the facility for a fixed monthly fee. Aramco gives the JV feedstock, and the JV gives Aramco power, steam, hydrogen, and other utilities.
As highlighted in the report, Aramco, via its subsidiary Saudi Aramco Power Company, has a 20 percent share in the JV; Air Products has 46 percent; ACWA Power has 25 percent; and Air Products Qudra (a 51/49 JV between Air Products and Qudra Energy) has 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 crude oil to produce main products such as ultra-light sulphur diesel, gasoline, and other products, the report concludes.