Font Size
Share this article


Print Friendly Version
30 October 2019
INVESTMENT

Saudi Aramco venture seeks around $6 billion for gas project

Standard Chartered and Banque Saudi Fransi are advising Saudi Aramco ventures on the talks with local and international lenders.

BLOOMBERG/ORE HUIYING


A joint venture between Saudi Aramco, Air Products & Chemicals and ACWA Power is in talks with banks to raise about $6 billion in debt, reported Bloomberg.

The entity will use the funding to buy gasification and power facilities as well as associated utilities from Saudi Aramco—the assets will be transferred to the venture once the projects start.

The $8-billion venture, announced in August 2018, has a 25-year contract to own and operate the project for a fixed monthly fee and will serve Saudi Aramco’s Jazan refinery and terminal on Saudi Arabia’s Red Sea coast. Air Products will own at least 55 per cent of the business, with Saudi Aramco and ACWA Power holding the rest.

The Kingdom is seeking to transform its oil-dependent economy by developing new industries and is pushing into petrochemicals as a way to earn more from its energy deposits. The joint venture is expected to increase efficiency, facilitate foreign direct investment and private sector involvement.


RELATED STORIES: STANDARD CHARTERED ACWA POWER AIR PRODUCTS & CHEMICALS SAUDI ARAMCO BANQUE SAUDI FRANSI


RECOMMENDED NEWS



BRANDS MAGAZINES LATEST EDITION


CPI Financial was established in Dubai in 1999 to meet the needs of an ever-expanding financial community, offering a comprehensive portfolio of market-leading products and services tailor-made for the banking and financial services sectors.


Subscribe to our News Letter

Subscribe

© 2019 CPI Financial. All rights reserved.

No part of this website may be reproduced or used in any form of advertising without prior permission in writing from the editor.