A Pennsylvania industrial firm is partnering with two Saudi Arabian energy companies to build and operate a gasification-to-power plant venture in that nation.
Air Products, Saudi Aramco and ACWA Power agreed to form a joint venture to buy the assets from Saudi Aramco for about $8 billion. The facility located at Jazan Economic City is under construction and will be transferred to the joint venture when it’s started up in 2019.
Saudi Aramco will supply feedstock to the joint venture, which will own and operate it under a 25-year contract for a fixed monthly fee. The JEC plant will produce power, hydrogen and other utilities for the Saudi firm.
Lehigh Valley, PA.-based Air Product will own 55 percent of the joint venture, with Saudi Aramco and ACWA Power sharing the balance.
When completed, the Jazan IGCC ASU facility will supply 75,000 metric tons per day of oxygen and nitrogen to Saudi Aramco’s IGCC power station and refinery in Jazan, Saudi Arabia.
“Air Products is very honored to be given this outstanding opportunity to expand our involvement in this megaproject in partnership with Saudi Aramco, the world’s largest company, and ACWA Power, the leading private power producer in the Middle East,” Air Products Chairman, President and CEO, Seifi Ghasemi, said in a statement. “We appreciate the trust that Saudi Aramco continues to place in us, first in awarding us the air separation unit, and now moving toward an expanded scope of supply at Jazan.”
Ghasemi said the project builds on the success of Air Products’ $1.3 billion joint venture with the Lu’An Mining Group in China. Under that deal, Lu’Ann supplies coal, steam and power from Lu’An and sends back syngas to the mining firm.