ACWA Power Co. said Jazan Integrated Gasification and Power Company (JIGPC) has completed the acquisition of the second group of assets for the Jazan Integrated Gasification Combined Cycle (IGCC) project, according to a bourse filing on Sunday.
The project involves the acquisition of the $12 billion IGCC plant from Aramco, the filing showed.
The move follows the successful asset acquisition and project financing transactions for the first group of assets completed in late October 2021. Some minor final commissioning items are set to be completed later this calendar year.
JIGPC is a joint venture (JV) between Aramco, ACWA Power, US-based Air Products, and Air Products Qudra, with ACWA owning a 25% equity stake. This follows the financial close of October 18, 2021.
The JV has purchased gasification, syngas cleanup, utilities, and power assets from Aramco, according to a statement by Air Products. The JV also owns and operates the facility under a 25-year contract for a fixed monthly fee, with Aramco providing feedstock to the JV, and the JV producing power, steam, hydrogen, and other utilities for Aramco.
JIGPC also serves Aramco's Jazan Refinery, a megaproject to process 400,000 barrels per day of crude oil to produce main products such as ultra-light sulfur diesel, gasoline, and other products.
Around 40% of the JV's capital structure consists of member contributions, and the remaining 60% has non-recourse project financing.
ACWA Power's net profit rose 110.37% to $234.3 million (SAR 883.4 million) during the first nine months of 2022, compared to $111.4 million (SAR 420 million) in the same period a year earlier. In the third quarter, the company posted a 12.35% decrease in net profit during the third quarter of 2022 to $90.6 million (SAR 341.7 million), compared to $103.4 million (SAR 389.9 million) in the previous quarter.
