Saudi Aramco, Air Products, and ACWA Power to Form Over $8 Billion Gasification/Power Joint Venture at Jazan Economic City

DHAHRAN, Saudi Arabia and RIYADH, Saudi Arabia and LEHIGH VALLEY, Pa., Aug. 12, 2018 /PRNewswire/ -- Saudi Aramco, Air Products (NYSE: APD), and ACWA Power today announced the signing of a Term Sheet to form an over $8 billion Gasification/Power joint venture (JV) located at Jazan Economic City (JEC) in Saudi Arabia.

The JV will purchase the gasification assets, power block and the associated utilities from Saudi Aramco for over $8 billion. These assets are currently under construction and will be transferred to the JV upon successful start-up, currently scheduled in 2019.

The JV will own and operate the facility under a 25-year contract for a fixed monthly fee. Saudi Aramco will supply feedstock to the JV, and the JV will produce power, hydrogen and other utilities for Saudi Aramco. Air Products will own at least 55 percent of the JV, with Saudi Aramco and ACWA Power owning the balance. The JV builds upon the importance and recognition that critical infrastructure assets in the region are being developed and operated under the Public Private Partnership (PPP) model.

The consortium will increase job opportunities, transfer the most advanced technologies in this field to the Kingdom, and enable Saudi talent to employ this technology for the first time.

The JV will serve Saudi Aramco's Jazan Refinery and terminal at JEC, a megaproject that will process heavy and medium crude oil to create liquefied petroleum gas, sulfur, asphalt, benzene and paraxylene, and add 400,000 barrels per day of refining capacity.

Saudi Aramco Senior Vice President of Downstream Abdulaziz M. Al-Judaimi said, "The Gasification/Power JV will be central to the self-sufficiency of our megaprojects at Jazan. The JV will enhance the overall value of the refinery and integrated gasification combined cycle power plant, and aid in transforming the province by positioning JEC for additional foreign direct investment and private sector involvement."

Air Products Chairman, President and CEO, Seifi Ghasemi, said, "Air Products is very honored to be given this outstanding opportunity to expand our involvement in this megaproject in partnership with Saudi Aramco, the world's largest company, and ACWA Power, the leading private power producer in the Middle East. Earlier this year, Air Products acquired the patents for the Shell liquids gasification technology, which is the core technology for the Jazan gasification facility. Building on the success of our Lu'An project in China, this new project further extends Air Products' leadership position supplying syngas to major companies around the world. We appreciate the trust that Saudi Aramco continues to place in us, first in awarding us the air separation unit, and now moving toward an expanded scope of supply at Jazan."

ACWA Power Chairman Mohammad Abunayyan added: "ACWA Power is committed to the expansion of the PPP model into the power sector. ACWA Power plays an important role in the power sector in the Kingdom and welcomes the opportunity to assist in the further development of Jazan economic corridor. Furthermore, our collaboration with industry- leading companies, Saudi Aramco and Air Products, is a direct result of the recognition of the need to innovate new structure as part of Vision 2030."

Air Products' Investor Call Details:
Air Products will hold a conference call on Monday, August 13, 2018 at 8:30 a.m. USET to discuss the new joint venture at Jazan. The teleconference will be open to the public and the media in listen-only mode by telephone and Internet broadcast.

Live teleconference:  785-424-1802
Passcode:  7133355
Internet broadcast/slides: Available on the Event Details page on Air Products' Investor Relations website.

Telephone replay: 888-203-1112 (domestic) or 719-457-0820 (international)
Passcode: 7133355
Available from 12:30 p.m. ET on August 13, 2018 through 12:30 p.m. ET on August 20, 2018.
Internet replay: Available on the Event Details page on Air Products' Investor Relations website.

About Saudi Aramco
Saudi Aramco is a world leader in integrated energy and chemicals. We are driven by the core belief that energy is opportunity. From producing approximately one in every eight barrels of the world's crude oil supply to developing new energy technologies, our global team is dedicated to creating a positive impact in all that we do. We focus on making our resources more sustainable and more useful. This promotes long-term economic growth and prosperity around the world. Saudi Aramco subsidiaries and affiliates have operated in the U.S. for more than 60 years. Visit us at www.saudiaramco.com

About Air Products
Air Products (NYSE:APD) is a world-leading Industrial Gases company in operation for over 75 years. The Company's core industrial gases business provides atmospheric and process gases and related equipment to manufacturing markets, including refining and petrochemical, metals, electronics, and food and beverage. Air Products is also the world's leading supplier of liquefied natural gas process technology and equipment.

The Company had fiscal 2017 sales of $8.2 billion from continuing operations in 50 countries and has a current market capitalization of about $35 billion. Approximately 15,000 passionate, talented and committed employees from a diversity of backgrounds are driven by Air Products' higher purpose to create innovative solutions that benefit the environment, enhance sustainability and address the challenges facing customers, communities and the world. For more information, visit www.airproducts.com.

NOTE:  This release contains "forward-looking statements" within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements about the potential transaction and, if consummated, expected outcomes of the Company's investments. These forward-looking statements are based on management's reasonable expectations and assumptions as of the date this release is furnished. Actual performance and financial results may differ materially from expectations expressed in the forward-looking statements because of many factors not anticipated by management, including, without limitation, whether and the terms on which the parties execute definitive documentation regarding the transaction; global or regional economic conditions and supply and demand dynamics in the market segments in which the Company is active; political risks, including the risks of unanticipated government actions; acts of war or terrorism; significant fluctuations in interest rates and foreign currencies from those currently anticipated; future financial and operating performance of major customers; unanticipated contract terminations or customer cancellations or postponement of projects and sales; the Company's ability to execute the projects in its backlog; asset impairments due to economic conditions or specific events; the impact of price fluctuations in natural gas and disruptions in markets and the economy due to oil price volatility; costs and outcomes of litigation or regulatory investigations; the success of productivity and operational improvement programs; the timing, impact, and other uncertainties of future acquisitions or divestitures, including reputational impacts; the Company's ability to implement and operate with new technologies; the impact of changes in environmental, tax or other legislation, economic sanctions and regulatory activities in jurisdictions in which the Company, its affiliates and business partners operate; and other risk factors described in the Company's Form 10-K for its fiscal year ended September 30, 2017. The Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this release to reflect any change in the Company's assumptions, beliefs or expectations or any change in events, conditions, or circumstances upon which any such forward-looking statements are based.

About ACWA Power
ACWA Power is a developer, investor and operator of a portfolio of power generation and desalinated water production plants currently with presence in 10 countries including in the Middle East and North Africa, Southern Africa and South East Asia regions. ACWA Power's portfolio, with an investment value in excess of USD 30 billion, 27+ GW of power and 3 million m³ /day of desalinated water to be mostly delivered on a bulk basis to state utilities and industrial majors on long term off-take contracts under Public-Private-Partnership, Concession and Utility Services Outsourcing models.

ACWA Power is owned by the Public Investment Fund of Saudi Arabia, the Saudi Public Pensions Agency and the International Finance Corporation (a member of the World Bank Group) and seven Saudi conglomerates.

ACWA Power pursues a mission to reliably deliver electricity and desalinated water with the most effective cost , thereby contributing to the social and economic development of the communities and countries it invests in and serves.

ACWA Power strives to achieve success by adhering to the values of Safety, People and Performance in operating its business.

For more information, visit www.acwapower.com

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SOURCE Air Products