JV Signs12bn Deal for ASU/Gasification/Power Project in Jizan

The joint venture partners behind the $12 billion air separation unit (ASU)/gasification/power project at the Jizan Economic City in Saudi Arabia have made the final agreements that will see the project progress.

In a statement the project partners, Saudi Arabia’s Aramco and ACWA Power and Air Products Qudra as well as the US’s Air Products, said that they will purchase ASUs, gasification, syngas cleanup, utilities and power assets from Aramco. Under the agreement, the joint venture will own and operate the facility under a 25-year contract for which they will be paid a monthly fee.

Aramco will still supply feedstock in return for the joint venture producing steam, hydrogen and other utilities for Aramco.

The Jizan Refinery is a 400,000 barrels a day refinery that processes crude oil to produce ultra-light sulphur diesel, gasoline and other products.

The statement added that the joint venture expects the asset transfer to take place in this month.