Aramco and Air Products Qudra join forces to develop lower-carbon hydrogen production business
Companies agree shared ownership of Jubail firm, with plans to supply hydrogen through a pipeline network in Saudi Arabia's Eastern Province
Agreement aims to support growth of Aramco's New Energies portfolio

DHAHRAN, Saudi Arabia, July 16, 2024 /PRNewswire/ -- Aramco, one of the world's leading integrated energy and chemicals companies, has signed definitive agreements to acquire an equity interest in the Jubail-based Blue Hydrogen Industrial Gases Company (BHIG), a wholly-owned subsidiary of Air Products Qudra (APQ). The transaction, which is subject to standard closing conditions, will also include options for Aramco to offtake hydrogen and nitrogen.

Building on its efforts to develop a lower-carbon hydrogen business and expand its portfolio of alternative energy solutions, Aramco expects its investment in BHIG will contribute to the development of a lower-carbon hydrogen network in the Kingdom of Saudi Arabia's Eastern Province, serving both domestic and regional customers. Upon completion of the transaction, Aramco and APQ, a joint venture between Air Products and Qudra Energy, are expected to each own a 50% stake in BHIG.

Ashraf Al Ghazzawi, Aramco Executive Vice President of Strategy & Corporate Development, said: "This investment highlights Aramco's ambition to expand its new energies portfolio and grow its lower-carbon hydrogen business. We are delighted to partner with APQ on this journey and believe there are promising commercial opportunities for hydrogen with lower emissions. We intend to leverage our growing capabilities in carbon capture and storage (CCS), as well as our technical expertise in hydrogen, with the ambition to support the establishment of a vibrant marketplace for lower-carbon hydrogen -- helping lay the foundations of a future energy system."

Dr. Samir J. Serhan, Air Products Qudra Chairman, said: "It is an honor to further extend Air Products Qudra's strong partnership with Aramco, working to accelerate the hydrogen economy and driving the creation of the largest hydrogen network in the Middle East, which is expected to serve the refining, chemical, and petrochemical industries. We look forward to providing our expertise in hydrogen and pipeline operations and supporting Aramco's need for a reliable supply of lower-carbon hydrogen for domestic and regional requirements."

BHIG, which is designed to produce lower-carbon hydrogen while capturing and storing CO₂, is intended to commence commercial operations in coordination with Aramco's CCS activities.

@aramco

About Aramco

As one of the world's leading integrated energy and chemicals companies, our global team is dedicated to creating impact in all that we do, from providing crucial oil supplies to developing new energy technologies. We focus on making our resources more dependable, more sustainable and more useful, helping to promote growth and productivity around the world. https://www.aramco.com

About Air Products Qudra

Air Products Qudra (APQ) is the leading development and investment company in the Middle East and was formed as a joint venture between Air Products and Qudra Energy, a subsidiary of Vision Invest. APQ is bringing world-leading technologies and global capabilities to build, own, and operate large-scale hydrogen, industrial gases, and energy facilities. APQ is working closely with industries including refineries, chemical, and petrochemical companies, as well as with governments as a trusted leader and sustainability partner, supporting countries to achieve their industrial growth and sustainability targets.

Disclaimer

The press release contains forward-looking statements. All statements other than statements relating to historical or current facts included in the press release are forward-looking statements. Forward-looking statements give the Company's current expectations and projections relating to its capital expenditures and investments, major projects, upstream and downstream performance, including relative to peers. These statements may include, without limitation, any statements preceded by, followed by or including words such as "target," "believe," "expect," "aim," "intend," "may," "anticipate," "estimate," "plan," "project," "can have," "likely," "should," "could," and other words and terms of similar meaning or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the Company's actual results, performance or achievements to be materially different from the expected results, performance, or achievements expressed or implied by such forward-looking statements, including the following factors: global supply, demand and price fluctuations of oil, gas and petrochemicals; global economic conditions; competition in the industries in which Saudi Aramco operates; climate change concerns, weather conditions and related impacts on the global demand for hydrocarbons and hydrocarbon-based products; risks related to Saudi Aramco's ability to successfully meet its ESG targets, including its failure to fully meet its GHG emissions reduction targets by 2050; conditions affecting the transportation of products; operational risk and hazards common in the oil and gas, refining and petrochemicals industries; the cyclical nature of the oil and gas, refining and petrochemicals industries; political and social instability and unrest and actual or potential armed conflicts in the MENA region and other areas; natural disasters and public health pandemics or epidemics; the management of Saudi Aramco's growth; the management of the Company's subsidiaries, joint operations, joint ventures, associates and entities in which it holds a minority interest; Saudi Aramco's exposure to inflation, interest rate risk and foreign exchange risk; risks related to operating in a regulated industry and changes to oil, gas, environmental or other regulations that impact the industries in which Saudi Aramco operates; legal proceedings, international trade matters, and other disputes or agreements; and other risks and uncertainties that could cause actual results to differ from the forward-looking statements in this press release, as set forth in the Company's latest periodic reports filed with the Saudi Exchange. For additional information on the potential risks and uncertainties that could cause actual results to differ from the results predicted please see the Company's latest periodic reports filed with the Saudi Exchange. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which it will operate in the future. The information contained in the press release, including but not limited to forward-looking statements, applies only as of the date of this press release and is not intended to give any assurances as to future results. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to the press release, including any financial data or forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law or regulation. No person should construe the press release as financial, tax or investment advice. Undue reliance should not be placed on the forward-looking statements.

View original content:https://www.prnewswire.co.uk/news-releases/aramco-to-acquire-50-stake-in-air-products-qudras-blue-hydrogen-industrial-gases-company-302198391.html

Tags

More Like This

Aramco to acquire a 40% stake in Gas & Oil Pakistan

Aramco to enter global LNG business by acquiring stake in MidOcean Energy

TAQA announced the divestiture of its stake in Air Liquide Arabia ("ALAR")

Aramco's strategic gas expansion progresses with $25bn contract awards

Hyundai Motor Signs MOU with KATECH, APQ and SAPTCO to Foster Hydrogen Mobility Ecosystem in Saudi Arabia

Aramco, SINOPEC, and Fujian Petrochemical break ground on new refining and petrochemical project in China

Aramco to enter South American retail market with Esmax acquisition

Aramco expands global venture capital program with $4bn funds injection