Saudi Aramco, others to finance power projects

A consortium of investors, including Saudi Aramco, said September 27 they agreed on the financial terms of a $12bn power joint venture in Saudi Arabia.

Saudi Aramco reached the agreement with New-York listed Air Products, Saudi Arabian power company ACWA Power and Air Products Qudra, a Saudi green-energy joint venture (JV) with Air Products.

The joint venture said it was purchasing air separation units, gasification, utilities and other power-related assets from Saudi Aramco. The JV already owns and operates Aramco’s Jazan Refinery, which churns out ultra-light sulphur diesel, gasoline and other refined petroleum products.

“The JV owns and operates the facility under a 25-year contract for a fixed monthly fee,” the partners said. “Aramco will supply feedstock to the JV, and the JV will produce power, steam, hydrogen and other utilities for Aramco.”

Oil companies globally are expanding into cleaner alternatives. During a June visit to Riyah, John Kerry, the US special envoy for climate, said both governments affirmed their intent to work collaboratively on options such as methane abatement and carbon capture and storage  technologies.

Hydrogen developments were also reviewed during the June meeting.