Aramco Dow $500m tank farm starts prequalification

28 March 2011

A total of 14 contractors vying for massive contract at $15bn petrochemicals complex

Saudi Aramco and the US’ Dow Chemical Company have received requests for prequalification documents from 14 contractors interested in the engineering procurement and construction (EPC) contract for the $500m tank farm at the pair’s $15bn petrochemicals project in the kingdom.

The tank farm project, which will be used for the storage of the petrochemicals produced at the complex, will be separated into three packages. The first package will cover the main site and have 40 tanks with all associated facilities. The second package will cover two cryogenic tanks with associated facilities, while the third package covering 34 tanks and associated facilities being built at the port.

The size of the tank farm is well in excess of other similar projects, due to the sheer scale of the petrochemicals scheme Aramco and Dow are planning. That makes it a particularly attractive development for contractors.

“We are hoping to be selected, but we are aware that there are a lot of companies who are bidding for this project,” says a source at one of the EPC contractors. “The work is relatively straightforward, but due to the sheer number of tanks the value is relatively high for such work.”

After prequalification has taken place and a shortlist of contractors has been selected the 50:50 joint venture partners behind the scheme will release a tender for the EPC contract in late April or early May 2011.

A decision is due by the end of 2011 with a completion date set for early 2015.    

The companies vying to be prequalified are:

  • Chicago Bridge & Iron (US)
  • Daelim (South Korea)
  • Daewoo Engineering & Construction (South Korea)
  • GS Engineering & Construction (South Korea)
  • Hyundai Engineering & Construction (South Korea)
  • Hyundai Heavy Industries (South Korea)
  • Larsen & Toubro (India)
  • Petrofac (UK)
  • Petrosteel (Singapore/local)
  • Punj Lloyd (India)
  • Saipem (Italy)
  • Samsung Engineering (South Korea)
  • Sinopec Engineering Incorporated (China)
  • SK Engineering & Construction (South Korea)

The Aramco Dow complex will have a capacity of about 8 million t/y and will be constructed at Jubail Industrial City 2 in the Eastern Province of the kingdom. The complex will produce a number of speciality chemicals aimed at pushing Saudi Arabia’s petrochemicals industry further downstream (MEED 10:12:11).

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