Pioneering outsourcing concept and unique finance structure impresses judges at International awards
RIYADH, Saudi Arabia, April 21, 2016 /PRNewswire/ — Jazan Gas Projects Company (JGPC), a joint venture between ACWA Holding (ACWA) and Air Products and Chemicals (AP), has won ‘Industrial Deal of the Year — Middle East and Africa’ at the Project Finance International (PFI) Awards and ‘Best Deal — Petrochemicals – Middle East and North Africa’ at the IJ Global Awards for the outstanding infrastructure financing of its USD 2.1 billion air separation facility dedicated to the Jazan Refinery and Terminal Complex Project.
In a first for a Saudi Arabia based industrial gas company, JGPC has cemented its position as a leader and pioneer in private infrastructure financing for its ASU (Air Separation Unit) facility, the largest ever to be built in the world. The ASU deal, notable for its size, scale and application, was part of a strategic objective for significant and large size privatisation to optimise capital spending at the refinery and terminal complex, based in Jazan Economic City in the southwestern region of the Kingdom.
Mohammad Abunayyan, Chairman of the JGPC Board and Chairman of ACWA, the majority shareholder said: “The ASU facility is a vital component of the oil refining operations in Jazan which is scheduled to begin operations in 2018. Due to the sheer magnitude and complexity of the deal, it was necessary for us to implement a number of innovative financial measures including a pioneering concept of outsourcing vital refinery and IGCC (Integrated Gasification Combined Cycle) feedstock to the private sector, and developing a unique Islamic financing structure. We are delighted that our efforts have been recognised by the PFI Awards and IJ Global Awards. This remarkable achievement is a testament to the highly skilled and dedicated team that manages operations and underpins our values for exceptional quality and innovation.”
Awarded on a Build Own Operate Transfer (BOOT) project structure, the ASU facility will supply up to 75,000 metric tons per day of oxygen and nitrogen to the new oil refinery and IGCC facility, using state-of-the-art proprietary technologies developed by Air Products.
The oxygen and nitrogen will be used to 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 (JEC). This will allow the refinery’s own operations 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.
Mr. Abunayyan continued: “We are very proud and heartened that the JGPC IGCC ASU facility is already receiving international acclaim. JGPC is operating on a world stage and in just two years will have built the largest and most advanced industrial gas complex in the world. To ensure the continued success of the project, as well as an outstanding financing infrastructure, we have a strong commitment to excellence spanning all areas of the project with an emphasis on safety, reliability, environmental stewardship and sustainable practices.”
JGPC broke ground on the build in July 2015. The first units are due to be online and commissioning in early 2018, working towards an expected completion date of mid 2018 in tandem with the refinery and gasifier.
“It is hoped the success of this project will encourage further similar projects and contributions from the private sector in developing Saudi Arabia’s economy,” concluded Mr. Abunayyan.