Saudi Aramco intends to build the largest industrial complex for gas in the world a cost of $2.1bn in Jazan.
The new project will supply 20,000 metric tonnes of oxygen and 55,000 metric tonnes of nitrogen to its Jazan refinery for 20 years.
The production capacity of the new Aramco oil refinery, to open in 2017, would be 400,000 barrels a day, with the production capacity of the gas-to-liquids integrated plant at 3,700 megawatts.
The project indicates the strength of the Saudi economy, and public-private partnerships, said Mohamed Abunayan, chairman of the Arabian Company for Water and Power Development (ACWA).
He said the selection of ACWA to carry out the project, showed Aramco’s faith in its capabilities to develop giant infrastructure projects with strategic importance in the Kingdom.
He said the financing of the project is Shariah-compliant, and would be developed with the Air Products and Chemicals company, a New York Stock Exchange-listed firm, in a build, own and operate agreement.
Ten international and national banks participated in financing the project with $1.8bn.
The Saudi banks include Banque Saudi Fransi, Samba Financial Group, Al-Inma Bank, Saudi British Bank and the National Commercial Bank.
The list of foreign banks include Mizuho Bank Ltd., Societé Generale, Sumitomo Mitsui Bank, Bank of Tokyo-Mitsubishi UFJ Ltd., and First Gulf Bank PJSC.
According to the contract, ACWA Holding will own 75% of the project while Air Products will own 25%.
The project won an award for best financing in the Middle East out of about 180 projects in 2015, and the biggest and best project in the world in terms of its 100% Islamic funding.
