Saudi oil and gas giant Aramco announced on Monday that it 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, the company said in a press statement.

Upon completion of the transaction, Aramco and APQ, a joint venture between Air Products and Qudra Energy, a subsidiary of Saudi's Vision Invest, are expected to each own a 50 percent stake in BHIG.

BHIG will produce lower-carbon hydrogen while capturing and storing CO2 and is intended to commence commercial operations in coordination with Aramco’s Carbon Capture and Storage (CCS) activities. 

Aramco owns a 20 percent stake in a $12 billion gasification and power JV with APQ, ACWA Power and Air Products. The JV, located in the Jazan Economic City, produces power, steam, hydrogen and other utilities for Aramco’s Jazan refinery under a 25-year contract for a fixed monthly fee with Aramco supplying feedstock to the JV.

Saudi Arabia is building the world’s largest green hydrogen plant at NEOM to produce green ammonia at scale in 2026. The project is a JV between ACWA Power, Air Products, and NEOM.

Read more: Abdullah Fahad Al-Khaledi for General Contracting awarded Aramco contract for Carbon Capture & Sequestration Project

(Writing by P Deol; Editing by Anoop Menon)

(anoop.menon@lseg.com)

Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa