Gasification: Jazan mega project

The JV will purchase the gasification assets, power block and the associated utilities from Saudi Aramco for over $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 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, sulphur, asphalt, benzene and paraxylene, and add 400 000 barrels per day of refining capacity.

Saudi Aramco senior vice president of downstream, Abdulaziz M. Al-Judaimi, said, “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.”

Air Products chairman, president and CEO, Seifi Ghasemi, said, “Air Products is very honoured to be given this outstanding opportunity to expand our involvement in this megaproject in partnership with Saudi Aramco, one of the world’s largest companies, and ACWA Power, the leading private power producer in the Middle East... Building on the success of our Lu’An project in China, this new project further extends Air Products’ leadership position supplying syngas to major companies around the world. We appreciate the trust that Saudi Aramco continues to place in us, first in awarding us the air separation unit, and now moving toward an expanded scope of supply at Jazan.”

ACWA Power Chairman Mohammad Abunayyan added: “ACWA Power is committed to the expansion of the PPP model into the power sector. ACWA Power plays an important role in the power sector in the Kingdom and welcomes the opportunity to assist in the further development of Jazan economic corridor. Furthermore, our collaboration with industry-leading companies, Saudi Aramco and Air Products, is a direct result of the recognition of the need to innovate new structure as part of Vision 2030.”

Earlier this year, Air Products acquired the patents for the Shell liquids gasification technology, which is the core technology for the Jazan gasification facility. This was part of Air Products’acquisition of Shell’s coal, refinery residue and biomass gasification technologies, giving Air Products “immediate access to Shell’s proven technology and a successful business, with that technology already in place at nearly 200 gasification systems delivering syngas around the world.”