Aramco has undertaken a $3.5bn project to build a greenfield plant to process unconventional gas from the Jafurah onshore field.
Saudi Aramco has awarded South Korean contractor Samsung Engineering a key package of its estimated $3.5bn Jafurah gas processing plant project.
MEED previously named the lowest bidders for two key packages of the Jafurah gas plant project, to be located in Saudi Arabia’s Eastern Province.
Samsung Engineering submitted the lowest bid for engineering, procurement and construction (EPC) package two of the project.
Aramco has now officially awarded the EPC contract for package two to Samsung.
Package two is the biggest EPC package of the Jafurah gas plant project, with an estimated value of $1.5bn. The precise contract value is not yet known.
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By GlobalDataAramco has undertaken the project to build a greenfield plant to process unconventional gas from the Jafurah onshore field, which is to be commissioned in 2023.
Package two 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 two, 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 (LTHE), India
- TechnipFMC, France
State-owned China Petroleum Engineering & Construction Company (CPECC) has reportedly emerged as the lowest bidder for EPC package three.
The main scope of work on package three covers installation of gas export pipelines and is worth an estimated $500m.
The other bidders for package three were India’s LTHE and Lebanon-based CAT Group.
Package one, which is understood to have a value of $1bn, remains in the bidding stage.
Aramco has set a bid submission deadline of 23 March.
Bidders for package one, which entails installation of gas compression facilities, include:
- Saipem,
- Hyundai Engineering & Construction
- TechnipFMC
- LTHE
- JGC Corporation, Japan
- GS Engineering & Construction, South Korea
- Samsung Engineering, South Korea
- Jafurah unconventional gas processing, Saudi Arabia
In February, Aramco announced it had received approval from Saudi Arabia’s government for a massive $118bn capital expenditure programme for the long-term development of the Jafurah unconventional onshore gas basin.
Saudi Crown Prince Mohammed bin Salman chaired a meeting of the Higher Committee for Hydrocarbons on 20 February to review plans for the field, which is the kingdom’s largest non-conventional and non-associated gas asset.
The field covers an area of 17,000km² and the volume of gas is estimated to be 200 trillion cubic feet of wet gas that contains gas liquids for the petrochemical industries and high-value capacitors.
The development will gradually increase the field’s production to 2.2 trillion cubic feet a year by 2036, which would represent about 25% of the kingdom’s current gas production.
The field will produce about 130,000 barrels per day (bpd) of ethane, which represents about 40% of the kingdom’s current production, and about 500,000bpd of gas liquids and condensates required for the petrochemical industries, which represents about 34% of Saudi Arabia’s current production.
When it comes online in 2023, the Jafurah gas plant is expected to produce up to 2.5 billion cubic feet of gas per day.
UK-based engineering firm Wood Group is doing the front-end engineering and design (FEED) works for the Jafurah gas plant project from its office in Reading, UK. Wood is also the project management consultant.
While the raw gas feed from the Jafurah field is to be processed at the gas plant at the site, the development is also expected to produce about 140 million barrels of oil equivalent per day (boepd) of natural gas liquids (NGL).
The NGL produced from Jafurah will likely be transported northwards via pipelines to Aramco’s Wasit gas processing facility.
Aramco is therefore planning to build a new NGL production facility at the Wasit gas plant, to receive and process the feed from the Jafurah field.
The Wasit gas plant currently processes 2.5 billion cubic feet per day of non-associated gas from the Hasbah and Arabiyah offshore fields.
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
