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Aramco, Acwa, Air Products to finalize $11.5bn Gas Joint Venture

Saudi Aramco, a global integrated energy and chemicals company, has announced plans to establish a joint venture with leading utility project developer Acwa Power and US-based Air Products for a gasification/power plant to be located at Jazan Economic City (JEC) in Saudi Arabia.

 

The Jazan Integrated Gasification Combined Cycle and Power Plant and Jazan Air Separation Unit will be built at a total investment of $11.5 billion.

 

The Jazan plant will be 46% owned by Air Products, a world-leading industrial gases company in operation for over 75 years, while 25% stake will be with Acwa Power, 20% with Saudi Aramco and 9% with Air Products Qudra.

 

In addition, Saudi Aramco signed seven MoUs at the Future Investment Initiative (FII) in Riyadh, Saudi Arabia.

 

These MoUs represent new collaborations with companies from France, Norway, New Zealand, South Korea, Spain and the US.

 

The MoUs are intended to support Saudi Aramco’s operations and Saudi Arabia’s economic diversification strategy by increasing the efficiency of technology used in upstream, downstream and engineering services. In the long-term, these agreements aim to help improve sustainability and technological efficiency throughout the value chain.

 

Saudi Aramco’s Senior VP (Technical Services) Ahmad A. Al-Sa’adi attended FII in addition to Chief Digital Officer Nabil Al Nuaim, who headlined a panel discussion on how business can best leverage data to anticipate risks, improve performance and optimize operations.

 

Al Sa’adi reaffirmed the company’s position, saying: "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."

 

The MOUs and commercial collaborations signed include:

 

*Air Products Qudra: Non-binding MoU between Saudi Aramco and APQ to discuss the establishment of an Industrial Gases Joint Venture.

 

*Aker ASA: MoU between Saudi Aramco and Aker ASA to collaborate on the 4th Industrial Revolution addressing sustainability and green environment.

 

*Dassault Systems: MoU between Saudi Aramco and Dassault Systems to work on advanced materials and 4IR technologies.

 

*Baker Hughes: MoU between Saudi Aramco and Baker Hughes to collaborate on artificial intelligence and digital transformation.

 

*BMT Co., Ltd.: Collaboration MoU between Saudi Aramco and BMT, BMT plans to invest in fittings and valves manufacturing facilities in the Kingdom.

 

*Tubacex Group: Collaboration MoU between Saudi Aramco and Tubacex Group, Tubacex Group plans to invest in pipe weld overlay and cladding services manufacturing facilities in the Kingdom.

 

*Pultron Composites: Collaboration MoU between Saudi Aramco and Pultron, Pultron plans to invest in non-metallic Glass Fiber Reinforced Pipes (GFRP) manufacturing facilities in the kingdom.

 

Saudi Aramco said these MoUs with international companies are mainly designed at increasing the efficiency of technology used in upstream, downstream and engineering services.

 

It will also help promote business investment opportunities through technology across the kingdom’s energy services sector ecosystem.

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