Gulf Construction Online - $4.7bn deals for gas plant

Saudi Focus

$4.7bn deals for gas plant

01 October 2015

Spain’s Tecnicas Reunidas and Britain’s Petrofac have been selected for contracts worth as much as $4.7 billion to build the Fadhili gas plant in Saudi Arabia for state oil company Saudi Aramco, industry sources said.

The new plant is expected to have a processing capacity of 2.5 billion standard cu ft per day (scfd) of sour gas from the onshore Khursaniyah and offshore Hasbah fields. The project is split into three construction packages for the gas processing unit, utilities and offsite facilities such as nitrogen, steam, power and water systems, and sulphur recovery.

Italy’s Saipem and South Korea’s Daelim Industrial had previously been said to be among the bidders, sources told Reuters in July. Tecnicas bid for two of the packages on its own, and for the third in conjunction with South Korea’s GS Engineering and Construction, according to a second industry source.

Ultimately, the Spanish firm won the two packages in which it bid solo: for the gas processing unit for as much as $2 billion and for utilities and offsites, worth as much as $1 billion, according to the first industry source and a separate source. Three sources confirmed that Petrofac won the package for sulphur recovery worth as much as $1.7 billion.

Aramco said earlier the Fadhili gas plant was on track to come onstream by 2019.

Fadhili, together with Aramco’s other gas projects in Wasit and Midyan, are slated to add more than 5 billion scfd of non-associated gas processing capacity.