Air Products will have 46% stake in the Jazan Power Joint Venture while ACWA Power, Saudi Aramco and Air Products Qudra will own 25%, 20% and 9% stakes, respectively
Saudi Arabian national petroleum and natural gas company Saudi Aramco is planning to establish the form a joint venture (JV) with ACWA Power and Air Products to acquire the gasification, power and industrial gas assets at Jazan Economic City.
The Jazan Power Joint Venture will 46% owned by Air Products, 25% by ACWA Power, 20% by Saudi Aramco and 9% by Air Products Qudra.
The assets planned to be acquired by JV are valued at $11.5bn
The proposed JV will own and operate the Jazan Integrated Gasification Combined Cycle and Power Plant as well as the Jazan Air Separation Unit. The assets are estimated to cost approximately $11.5bn.
Additionally, Saudi Aramco has signed seven memorandum of understandings (MoUs) with seven companies, to support its operations as well as increase efficiency of the technology used in upstream, downstream and engineering services.
The MoUs, which also support Saudi Arabia’s economic diversification strategy, have been signed at the Future Investment Initiative (FII) held in Riyadh, Saudi Arabia.
Saudi Aramco technical service senior vice-president Ahmad Al-Sa’adi said: “Saudi Aramco aims to promote business investment opportunities through technology across the Kingdom’s energy services sector ecosystem.
“The agreements signed today support the Kingdom’s plans to develop industrial zones, create jobs and attract foreign direct investment, as well as drive economic diversification.”
Saudi Aramco signed the MOUs with Air Products Qudra for the establishment of an Industrial Gases Joint Venture; with Aker to collaborate on the 4th Industrial Revolution to address sustainability and green environment; and with Dassault Systems to work on advanced materials and 4IR technologies.
The MoUs have also been signed by Saudi Aramco with Baker Hughes to collaborate on artificial intelligence and digital transformation; with BMT to invest in fittings and valves manufacturing facilities; with Tubacex Group to invest in pipe weld overlay and cladding services manufacturing facilities; and with Pultron Composites to invest in non-metallic Glass Fiber Reinforced Pipes (GFRP) manufacturing facilities.