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July 3, 2020

Aramco extends Jafurah gas tender deadlines

By MEED   

Saudi Aramco has extended the tender closing date for two packages on its estimated $3.5bn Jafurah gas plant project, according to sources.

The submission date for engineering, procurement and construction (EPC) bids for both packages 1 and 4 is 30 August, the sources said.

The earlier deadline for both packages was 30 June.

Aramco has undertaken the project to build a greenfield plant to process unconventional gas from the Jafurah onshore field, located in Saudi Arabia’s Eastern Province, which is to be commissioned in 2023.

The Jafurah gas plant project has six main packages.

While packages 1 and 4 remain in the bid submission phase, bids for packages 2, 3 and 5 were submitted months ago.

In April, MEED reported that Aramco had asked contractors that have submitted bids for the three packages to extend the validity of their proposals until the end of the year, owing to the business impact of Covid- 19 and low oil prices on the oil and gas industry.

Jafurah EPC packages

Package 1 of the project, which entails installation of gas compression facilities, is estimated to have a contract value of more than $1bn.

Bidders for package 1 include: Saipem (Italy), Hyundai Engineering & Construction (South Korea), TechnipFMC (France), Larsen & Toubro Hydrocarbon Engineering (India), JGC Corporation (Japan), GS Engineering & Construction (South Korea).

The scope of work on package 4 covers building pipelines and well tie-ins at the Jafurah unconventional gas field development. The job also includes installation of wellpads, flowlines, remote well headers, trunklines and transmission lines at the project site.

Bidders for the estimated $500m package 4 contract are understood to be: Saipem (Italy), Gulf Consolidated Contractors (Saudi Arabia), Dodsal (UAE), Al-Rashid Trading & Contracting (Saudi Arabia), Sinopec Engineering (China), Nesma & Partners (Saudi Arabia), China Petroleum Pipeline Engineering (China), CAT Group (Lebanon), Larsen & Toubro Hydrocarbon Engineering (India).

Regarding the packages in the bid evaluation phase, MEED has previously reported that South Korea’s Samsung Engineering had emerged as frontrunner for package 2 of the megaproject.

Package 2 is the biggest EPC package of the Jafurah gas plant project, with an estimated value of $1.5bn.

Package 2 covers EPC works for the installation of the main gas processing plant, and forms the core component of the project.

The other bidders for package 2, in order of their bid prices, are: Hyundai Engineering & Construction (South Korea) / Hyundai Engineering (South Korea), Saipem (Italy) / Siirtec Nigi (Italy), Larsen & Toubro Hydrocarbon Engineering (India), TechnipFMC (France) South Korea’s Hyundai Engineering & Construction is reported to have emerged as L1 for EPC package 3.

The main scope of work on package 3 covers installation of gas export pipelines, and is worth an estimated $500m.

The other bidders for package 3 were Saipem and Samsung Engineering.

Bid evaluation is also under way for package 5, which is estimated to be a $500m contract for the installation of a 349 kilometre-long pipeline that will export gas produced by the Jafurah plant.

Package 6, an approximately $100m job, which caters to building storage and loading facilities at the Jafurah project site, is in the front-end engineering and design (feed) phase.

Aramco has awarded KBR-AMCDE the feed contract for the package, according to information obtained by MEED Projects.

This article is published by MEED, the world’s leading source of business intelligence about the Middle East. MEED provides exclusive news, data and analysis on the Middle East every day. For access to MEED’s Middle East business intelligence, subscribe here.

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