Saudi Aramco, Air Products, and ACWA Power signed a Term Sheet to form an over $8 billion Gasification/Power joint venture (JV) located at Jazan Economic City (JEC) in Saudi Arabia.

The JV will purchase the gasification assets, power block and the associated utilities from Saudi Aramco for more than $8 billion. 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 (PPP) model.

The JV will serve Saudi Aramco’s Jazan Refinery and terminal at JEC, a megaproject that will process heavy and medium crude oil to create liquefied petroleum gas, sulfur, asphalt, benzene and paraxylene, and add 400,000 barrels per day of refining capacity.

The Gasification/Power JV will be central to the self-sufficiency of our megaprojects at Jazan. The JV will enhance the overall value of the refinery and integrated gasification combined cycle power plant, and aid in transforming the province by positioning JEC for additional foreign direct investment and private sector involvement.

—Abdulaziz M. Al-Judaimi, Saudi Aramco Senior Vice President of Downstream