Saudi Arabian Oil Co., Air Products and Chemicals Inc. and ACWA Power have agreed to form a joint venture that will generate power, hydrogen and other products for Saudi Aramco.

The joint venture will purchase Saudi Aramco's gasification assets, power block and associated utilities for more than $8 billion. It will own and operate a facility at Saudi Arabia's Jazan Economic City for 25 years for a fixed monthly fee from Saudi Aramco.

Air Products will own about 55% to 65% of the venture, with ACWA Power owning 25% and Saudi Aramco holding about 10% to 20%.

The gasification-and-power joint venture will serve Saudi Aramco's megaproject at Jazan to process crude oil for creating liquefied petroleum gas, sulfur, asphalt, benzene and paraxylene. The entity will also add 400,000 barrels per day of refining capacity.

Air Products said it expects the joint venture to be fully operational by 2020.