Aramco (2222) has acquired a 50% stake in Blue Hydrogen Industrial Gases Company (BHIG).
The deal also includes an option to purchase hydrogen and nitrogen.
Details
The global energy giant expects its investment in “Blue Hydrogen Industrial Gases Company,” a subsidiary of “Air Products Qudra” based in Jubail, to establish a low-carbon hydrogen network. This network will serve local and regional customers in Saudi Arabia’s Eastern Province.
So What
The deal, subject to final closing conditions, reflects “Saudi Aramco’s” ambition to expand its portfolio of new energies.
It also aims to grow its low-carbon hydrogen business, according to “Ashraf Al Ghazzawi,” the company’s Executive Vice President for Strategy and Corporate Development.
Meanwhile, “Samir Serhan,” Chairman of “Air Products Qudra,” stated that the acquisition would help create the largest hydrogen network in the Middle East. He believes this network will serve the refining, chemical, and petrochemical industries.
Some Context
During Tuesday’s trading session, the company’s stock rose by 0.5% due to its recent acquisition, despite Brent crude prices falling below USD 85 per barrel.
On the other hand, the Saudi stock market index “TASI” continued its strong upward trend for the ninth consecutive session, ending Tuesday up by about 1.1% to reach 12,080 points. This marked the first time it reclaimed the 12,000-point level since last May.
Total trading amounted to SAR 7.25 billion, with 230.5 million shares traded, reflecting a “state of optimism” in the market amid the announcement of quarterly company results and improved liquidity levels.
