Air Products, the US LNG equipment-maker and industrial gas company, said it was in final negotiations to form a joint venture with Saudi Aramco and Acwa Power to acquire the gasification, power and industrial gas assets at Jazan Economic City, representing a total investment value of about $11.5 billion.
The confirmation from Air Products follows an announcement made by Saudi Aramco at the Future Investment Initiative conference in Riyadh and builds on previous Air Products statements on the world-class project.
The US company said it looked forward to concluding negotiations and expects to close the transaction by the end of 2019.
The Lehigh Valley, Pennsylvania-based company conducts its industrial gases business alongside its provision of LNG equipment products such as the main cryogenic heat exchangers for plants and its proprietary propane pre-cooled mixed refrigerant liquefaction process.
Most of the worldwide LNG production comes from Air Products technology and the company provides key equipment for the natural gas liquefaction process for large export plants, small and mid-sized plants and floating LNG facilities.
Air Products said it would provide additional comments in its forthcoming fiscal fourth-quarter earnings on November 7.
The Jazan Region is in the far southwest corner of Saudi Arabia and stretches some 185 miles (300 kilometres) along the southern Red Sea coast, bordering Yemen on its Southern edge.