Saudi Aramco receives bids for contracts in gas expansion drive

HDC Holdings Co

23/08/2017 11:16

KHOBAR, Saudi Arabia, Aug 23 (Reuters) - Saudi Aramco has 
received bids from international engineering companies to build 
gas booster compressor stations at Haradh and Hawiyah, industry 
sources said, as the country plans to diversify its energy mix. 
    The contracts are part of a $4 billion scheme to increase 
gas production in the country for domestic consumption. 
 urn:newsml:reuters.com:*:nL8N1L240E 
    Saudi Arabia's domestic gas demand has been rising mainly 
due to the growth of industrial sectors, which the country wants 
to develop further. 
    Last week, Asian and European companies submitted bids for 
the expansion of the Hawiyah gas plant. Aramco plans to expand 
the processing capacity at Hawiyah by 1.3 billion standard cubic 
feet per day (scfd). It currently processes 2.5 billion scfd of 
gas.  urn:newsml:reuters.com:*:nL8N1L240E 
    The companies that have made bids are: South Korean Hyundai 
Development Co Engineering & Construction (HDEC)  012630.KS , GS 
Engineering and Construction  006360.KS , Spain's Tecnicas 
Reunidas  TRE.MC , Italy's Saipem  SPMI.MI , Chinese Shandong 
Electric Power Construction Corp (SEPCO), India's Larsen and 
Toubro (L&T)  LART.NS , Taiwan's CTCI  9933.TW  and Britain's 
Petrofac  PFC.L  
    Taiwan's CTCI said they had made a bid for the project, 
declining to give details.    
    Hyundai Development Co Engineering & Construction said the 
company submitted the bid, expecting results to be out at the 
end of the year or early next year. 
    TR was not available for comment and Petrofac provided no 
comment. 
    Saudi Aramco did not immediately respond to an emailed 
request for comment. 
    Saudi Aramco is implementing a two-phase plan to expand its 
Master Gas System, built in the mid-1970s to gather and process 
associated gas from oil wells for domestic industry. 
    It is scheduled to complete the first phase of the capacity 
expansion of system by the end of this year by installing 
facilities, including the booster compressor 
stations. urn:newsml:reuters.com:*:nL5N1KH4I8 
    A second phase of expansion of the MGS will bring capacity 
up to 12.5 billion standard cubic feet per day in 2019. 
     
 
 (Reporting by Reem Shamseddine, additional reporting by Yuna 
Park, Karolin Schaps, Robert Hetz, Faith Hung, Stephen Jewkes. 
Editing by Jane Merriman) 
 ((Reem.Shamseddine@thomsonreuters.com; +966503335202; Reuters 
Messaging: reem.shamseddine.thomsonreuters.com@reuters.net)) 
 
Keywords: ARAMCO GAS/BOOSTER