Summary
Air Products & Chemicals, Inc. (APD) announced a significant milestone in its joint venture with Saudi Aramco. The Jazan Integrated Gasification and Power Company (JIGPC), a key project for APD, successfully completed a second drawdown and asset purchase from Saudi Aramco. This transaction, valued at $4.15 billion for the acquired assets, involved Air Products contributing approximately $908 million. This move solidifies the project's progress and is expected to lead to an increase in the fixed monthly fees JIGPC receives for its products supplied to Aramco.
Key Highlights
- 1JIGPC, a $12 billion gasification and power joint venture with Saudi Aramco, has completed a second significant closing event.
- 2Air Products contributed approximately $908 million in this second closing.
- 3JIGPC purchased a second group of gasification, syngas clean up, and power assets from Aramco for $4.15 billion.
- 4The project involves a joint venture with Saudi Aramco, ACWA Power, and Air Products Qudra.
- 5The fixed monthly fees received by JIGPC from Aramco are expected to increase following this second closing.
- 6The parties anticipate completing minor final commissioning items for the project later in the calendar year 2023.