Page 4 - DMEA Week 39 2021

DMEA COMMENTARY DMEA

Jazan deal done as

petchem players

eye merger

The partners developing a major new power and utilities plant in
southern Saudi Arabia have finally reached terms that will allow them

to progress while merger talks move forward for two petchem players.

MIDDLE EAST SAUDI Aramco, Air Products, ACWA Power Co. (SAPCO) and 9% by Air Products Qudra.
and Air Products Qudra announced this week This gives Air Products a net ownership of 50.6%
that they had signed ‘definitive’ agreements to thanks to its stake in the Air Products Qudra JV.
WHAT: acquire the assets and finance their planned joint ASUs, gasification, syngas clean-up, utility
Aramco, Air Products, venture (JV) in Jazan Economic City. and power assets will be purchased from Ara-
ACWA Power and Air Meanwhile, two significant players in the mco, which will supply feedstock to the facility.
Products Qudra have country’s petrochemicals industry announced In turn, the Jazan unit will produce 3.8 GW
agreed terms for the non-binding plans to merge as they seek to of power, 585,000 tonnes per hour of steam,
acquisition of assets and compete with consolidated efforts by larger 184,000 cubic metres per hour of hydrogen
finance for the multi- companies. and other utilities for Aramco, the JV said in a
billion-dollar Jazan IGCC. statement.
Long-awaited progress The JV owns and operates the facility under
WHY: The Jazan partners announced plans for the $8bn a 25-year contract, for which it will pay monthly
The facility is a key part Jazan Integrated Gas Combined-Cycle (IGCC) fees to Aramco. The private partners are carrying
of efforts to develop the plant in 2018, but the project, which covers air out a design-build contract awarded in 2015 cov-
south-eastern Jazan separation unit (ASU), gasification and power, ering the air separation unit and oxygen supply
Economic City where is now expected to come in at an estimated cost facility – at capacity of 20,000 tonnes per day of
Aramco is continuing of $12bn. oxygen and 55,000 tpd of nitrogen billed as the
to start-up a major new The JV is 46% owned by Air Products, 25% world’s largest industrial gases complex – at the
refinery. by ACWA Power, 20% by Saudi Aramco Power 4,000-MW plant.

WHAT NEXT:
SIIG and Petrochem
appear set to consolidate
their efforts to compete in
the Saudi petrochemical
sector.

P4 www. NEWSBASE .com Week 39 30•September•2021