The transaction is subject to customary closing conditions and includes the option for Aramco to offtake hydrogen and nitrogen. (Source: Shutterstock)
Aramco announced on July 16 its intent to acquire a 50% equity interest in Air Products Qudra’s (APQ) wholly-owned subsidiary Blue Hydrogen Industrial Gases Co. (BHIG).
APQ, a joint venture between Air Products and Qudra Energy, will own the other 50% stake in BHIG at the transaction’s close.
Aramco’s investment in BHIG will expand its lower-carbon hydrogen business and contribute to the development of a hydrogen network in Saudi Arabia’s Eastern Province.
“This investment highlights Aramco’s ambition to expand its new energies portfolio and grow its lower-carbon hydrogen business," said Ashraf Al Ghazzawi, Aramco executive vice president of strategy and corporate development. "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.”
BHIG’s commercial operations to produce lower-carbon hydrogen while capturing CO2 will operate in tandem with Aramco’s CCS activities.
The transaction is subject to customary closing conditions and includes the option for Aramco to offtake hydrogen and nitrogen. A price was not disclosed in the announcement.
Recommended Reading
SLB Earnings Rise, But Weakened 4Q and 2025 Ahead Due to Oil Glut
2024-10-22 - SLB, like Liberty Energy, revised guidance lower for the coming months, analysts said, as oilfield service companies grapple with concerns over an oversupplied global oil market.
Oxy’s Hollub Drills Down on CrownRock Deal, More M&A, Net-zero Oil
2024-11-01 - Vicki Hollub is leading Occidental Petroleum through the M&A wave while pioneering oil and gas in EOR and DAC towards the goal of net-zero oil.
Twenty Years Ago, Range Jumpstarted the Marcellus Boom
2024-11-06 - Range Resources launched the Appalachia shale rush, and rising domestic power and LNG demand can trigger it to boom again.
Private Equity Gears Up for Big Opportunities
2024-10-04 - The private equity sector is having a moment in the upstream space.
Quantum’s VanLoh: New ‘Wave’ of Private Equity Investment Unlikely
2024-10-10 - Private equity titan Wil VanLoh, founder of Quantum Capital Group, shares his perspective on the dearth of oil and gas exploration, family office and private equity funding limitations and where M&A is headed next.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.