Saudi Aramco-led Jazan IGCC Complex consortium close to raising $5.6 bln financing: sources

Saudi Aramco oil tanks at Ras Tanura

The consortium of companies owning Jazan integrated gasification combined-cycle (IGCC) Complex, led by Saudi Aramco, is set to raise financing worth nearly $5.6 billion for the financial closure, CNBC Arabia reported, citing sources.

The financing may be secured this week, the sources said, adding that the financial closure of the project is expected in the fourth quarter of 2021.

The project's total debt reached around $7.2 billion, while the remaining portion will be financed through a soft loan worth $1.6 billion from the Saudi Industrial Development Fund (SIDF).

A total of 22 local banks are expected to compete for the financing, the sources said, adding that Standard Chartered and Saudi Fransi Capital are the financial advisors, while White & Case LLP will provide legal advisory services to Aramco.

With an estimated value of $12 billion, the IGCC Complex consists of an integrated gasification, combined cycle power plant, air separation unit and associated utilities, according to data compiled by Argaam.

Air Products owns 46% of the project, while ACWA Power and Saudi Aramco hold 25% and 20%, respectively.

The joint venture (JV) will own, operate and transfer the facility under a 25-year contract. Aramco will supply the raw materials used by the refinery.

The electricity production capacity of the new project is about 3,800 megawatts (MW), 184,000 cubic meters of hydrogen per hour, and steam of around 585,000 tons per hour.