Air Products to form $8B JV with Saudi Aramco, ACWA Power
Saudi Aramco, Air Products, and ACWA Power announced the signing of a Term Sheet to form an over $8B Gasification/Power joint venture located at Jazan Economic City in Saudi Arabia. The JV will purchase the gasification assets, power block and the associated utilities from Saudi Aramco for over $8B. These assets are currently under construction and will be transferred to the JV upon successful start-up, currently scheduled in 2019.The JV will own and operate the facility under a 25-year contract for a fixed monthly fee. Saudi Aramco will supply feedstock to the JV, and the JV will produce power, hydrogen and other utilities for Saudi Aramco. Air Products will own at least 55% of the JV, with Saudi Aramco and ACWA Power owning the balance. The JV builds upon the importance and recognition that critical infrastructure assets in the region are being developed and operated under the Public Private Partnership model.