Saudi Aramco gets bids to expand Hawiyah gas plant - sources

HDC Holdings Co

16/08/2017 13:27

KHOBAR, Saudi Arabia, Aug 16 (Reuters) - Saudi Aramco 
 IPO-ARMO.SE  has received bids from international engineering 
firms to expand the Hawiyah gas plant, industry sources said on 
Wednesday as the state oil giant continues spending to expand 
its core business. 
    The companies that submitted their proposals on Sunday are: 
South Korean Samsung Engineering  028050.KS , Spain's Tecnicas 
Reunidas  TRE.MC , Taiwan's CTCI  9933.TW , Italy's Saipem 
 SPMI.MI , Britain's Petrofac  PFC.L , India's Larsen & Toubro 
(L&T)  LART.NS . 
    South Korea's Hyundai Engineering  000720.KS  and Hyundai 
Development Co Engineering & Construction (HDEC)  012630.KS  bid 
together as a consortium. 
    Saudi Aramco does not comment on rumour or speculation, it 
said of the report. 
    Hyundai declined to comment. Tecnicas Reunidas was not 
available for comment.  
    L&T and Samsung Engineering confirmed to Reuters they bid 
for the project. 
    Aramco plans to expand the processing capacity at Hawiyah by 
1.3 billion standard cubic feet per day (scfd). The Hawiyah gas 
plant currently processes 2.5 billion scfd of gas.  urn:newsml:reuters.com:*:nL5N1F96K3 
    Hawiyah is part of Ghawar, the world's largest onshore 
oilfield. 
    Raising gas production is key to Saudi Arabia's plan to 
diversify its energy mix by cutting the use of crude oil and 
liquids for power generation while allocating more gas to other 
industries it aims to develop. 
    Despite falling oil prices, Saudi Aramco is pushing ahead 
with oil and gas projects that it has highlighted as a priority 
for the long term to keep the world well supplied with oil while 
meeting gas demand domestically. 
    It plans to nearly double gas production to 23 billion 
standard cubic feet a day in the next decade.  urn:newsml:reuters.com:*:nL5N16G4X7 
    Its CEO Amin Nasser said last month the firm plans to invest 
more than $300 billion over the coming decade to reinforce its 
pre-eminent position in oil, maintain spare oil production 
capacity, and pursue a large exploration and production program 
centering on conventional and unconventional gas resources. 
    But apart from those targets, Aramco also aims to enhance 
its long-term revenues by building a diversified growth platform 
and through international gas opportunities, it said last week 
in a statement in its internal publication, the Arabian Sun. 
 
 (Reporting by Reem Shamseddine, Promit Mukherjee in MUMBAI, 
Yuna Park in Seoul, Robert Hetz in Madrid; Editing by Adrian 
Croft) 
 ((Reem.Shamseddine@thomsonreuters.com; +966503335202; Reuters 
Messaging: reem.shamseddine.thomsonreuters.com@reuters.net)) 
 
Keywords: ARAMCO HAWIYAH/