Air Products in Final Talks on Saudi JV
US industrial gases manufacturer Air Products is in final negotiations to form a joint venture with Saudi Aramco, ACWA Power and Air Products Qudra to acquire gasification, power and industrial gas assets at Jazan Economic City in the desert kingdom. The project has a total investment value of about $11.5 billion.
The deal is due to be completed by the end of 2019. Under the terms, Air Products would own 46% of the jv, ACWA Power 25%, Saudi Aramco 20% and Air Products Qudra 9%. Together, the partners would operate the air separation unit at the site.
Altogether this week, Aramco signed signed seven Memoranda of Understanding (MOUs) with international companies said to be aimed at increasing the efficiency of technology used in upstream, downstream and engineering services as well as promoting business investment opportunities across the kingdom’s energy services sector.
Saudi Arabia’ most powerful energy producer said it had sealed agreements with companies based in France, Norway, New Zealand, South Korea, Spain and the US. Aramco said the MoUs are intended to both its operations and Saudi Arabia’s economic diversification strategy.
Another pending Aramco deal close to the chemicals sector is an MOU with Pultron Composites. The Indian company is said to be investing in non-metallic glass fiber reinforced pipes (GFRP) manufacturing facilities in Saudi Arabia.
According to reports citing Saudi television, Aramco is now planning to launch its initial public offering (ipo), on Nov. 5. After being touted with much fanfare, the plans were abruptly withdrawn a week ago.
