Gulf Construction Online - Acwa JV breaks ground on $2.1bn gas complex

Saudi Focus

Acwa JV breaks ground on $2.1bn gas complex

01 August 2016

Jazan Gas Projects Company (JGPC), a joint venture between Saudi-based Acwa Holding and US-based Air Products, has broken ground on an industrial gas complex being developed by Saudi Aramco at an investment of $2.1 billion.

The upcoming facility will serve Saudi Aramco’s Jazan refinery and terminal.

Once ready, the complex will supply a total of 75,000 tonnes per day of industrial gas (20,000 of oxygen and 55,000 of nitrogen), for 20 years to Saudi Aramco’s refinery.

The contract was awarded to JGPC by Saudi Aramco in 2015 to build, own and operate the world’s biggest industrial gas plant.

Speaking at the ground-breaking ceremony, Mohammad Abunayyan, the chairman of the JGPC board and chairman of Acwa Holding Board (the majority shareholder), said: “Since the contract was awarded, we are very proud to have demonstrated outstanding infrastructure financing which has enabled us to be well advanced with the build schedule. We have also recruited a highly skilled team to manage operations and underpin our values for exceptional quality and customer service.”

“Construction on-site started a month earlier than planned, initial drawings have been issued and we have a clear plan of mobilisation to Jazan from this date,” stated Abunayyan.

The gas complex will require 600 MW to operate and will consist of six air separation trains.

Implementing unique technology developed by Air Products, the plant will produce oxygen and nitrogen which will supply the gasifier to generate the gas necessary to run the power generators and to provide feedstock to the refinery and the adjacent Jazan Economic City.

This will allow the integrated gasification combined cycle (IGCC) plant to economically and efficiently generate enough electricity to cover the refinery’s needs, enable the development of small industries, and provide power for communities in the area.

Fuad Al Azman, general manager of Jazan Area Projects, said: “This is the largest third-party project Saudi Aramco has awarded to the private sector and, as such, demonstrates its faith in the joint capabilities of Acwa Holding and Air Products to develop giant infrastructure projects of strategic importance in the kingdom.”

The gas complex will be a cornerstone development in the expansion of Jazan Economic City, a strategic area of growth for Saudi Arabia.