Saudi Aramco announced plans to establish the Jazan Power joint venture, in partnership with US-based Air Products and ACWA Power, the local media reported. Air Products will own 46 percent of the joint venture, while ACWA Power, Saudi Aramco, and Air Products Quadra will own 25 percent, 20 percent, and nine percent respectively.
The proposed Jazan Power joint venture will own and operate the Jazan Integrated Gasification Combined Cycle and Power Plant and Jazan Air Separation Unit. The two facilities will require a $11.5 billion investment.
The Jazan Power joint venture will operate under a 25-year contract for a fixed monthly fee. Aramco signed seven MoUs at the Future Investment Initiative held in Riyadh. The MoUs comprise new collaborations with companies from six countries, including France, Norway, New Zealand, South Korea, Spain and the United States.
These agreements are established to support the Kingdom of Saudi Arabia’s economic diversification efforts and Aramco’s operations. This will be done by boosting technology efficiency in upstream, downstream and engineering services.
Ahmad A. Al-Sa’adi, Saudi Aramco’s Senior Vice President of Technical Services, told the local media that, “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.”
Aramco will supply feedstock and the joint venture will generate power and hydrogen among other utilities for the oil giant.