Spain's Tecnicas Reunidas leads bidding for Aramco gas projects

Samsung E&A Co

23/10/2017 14:44

KHOBAR, Saudi Arabia, Oct 23 (Reuters) - Tecnicas Reunidas 
 TRE.MC  has offered the lowest bids to build two gas projects 
which are planned by state oil giant Saudi Aramco, sources 
familiar with the plans said on Monday. 
    While the Spanish engineering firm has made the lowest bids 
on the Haradh and Hawiyah gas compression stations and the 
Hawiyah gas plant, Italy's Saipem  SPMI.MI  and Samsung E&C are 
also well placed to win the Hawiyah gas plant work, they said. 
    Aramco plans to expand the processing capacity at Hawiyah by 
1.3 billion standard cubic feet per day (scfd) from 2.5 billion 
scfd of gas at present. 
    The new gas compression plants and the expansion of the 
Hawiyah gas plant are expected to cost more than $4 billion, 
industry sources have estimated.  
    Saudi Aramco does not comment on its business transactions, 
it said in response to an emailed request for comment. 
    Tecnicas Reunidas declined to comment, while Saipem had no 
comment and a spokesman for Samsung Engineering  028050.KS  said 
it had no new information on the bidding progress. 
    "We expect results to be announced (at the) beginning of 
November," he said. 
    Hawiyah and Haradh are part of Ghawar, the world's largest 
onshore oilfield. 
    Gas will play a key role towards the diversified energy mix 
which Saudi Arabia is keen to achieve by cutting the use of 
crude oil and liquids for power generation, while allocating 
more gas to fuel economic growth and industrialisation. 
    The kingdom is targeting raising the use of gas in its 
energy mix to 70 percent, officials have said. 
    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 domestic gas demand. 
    It plans to nearly double gas production to 23 billion 
standard cubic feet a day in the next decade.  
 
 (Reporting by Reem Shamseddine; additional reporting by Yuna 
Park in Seoul, Robert Hetz in Madrid and Stephen Jewkes in 
Milan; editing by Alexander Smith) 
 ((Reem.Shamseddine@thomsonreuters.com; +966503335202; Reuters 
Messaging: reem.shamseddine.thomsonreuters.com@reuters.net)) 
 
Keywords: TECNICAS ARAMCO/GAS