Saudi Aramco, the world’s biggest oil exporter, has invited prequalified contractors to submit bids for the construction of an estimated $300m bulk plant in Hail, according to sources familiar with the matter.

The eight bidders are expected to submit their proposals for the engineering, procurement and construction (EPC) deal by 4 September. The main contract is expected to be awarded in November this year and the project is due for completion by May 2019.

The bidders are understood to include:

• Gama (Turkey)
• JGC Corporation (Japan)
• Larsen & Toubro (India)
• Nesma & Partners (Local)
• Punj Lloyd (India)
• Sinopec Petroleum Engineering Corporation (China)
• Techint (Italy
• Tekfen Construction (Turkey)

The scope of works includes construction of storage facilities for diesel and gasoline of up to 300,000 barrels, as well as associated infrastructure and support buildings.

Presently, the Hail region acquires its gasoline and diesel requirement from the Qasim bulk plant, situated 300 kilometres away.

The demand for diesel and gasoline in the Hail area is forecast to rise by 3 per cent a year, which convinced Aramco to revive the scheme in 2014, after it was put on hold for many years, according to regional projects tracker MEED Projects.

Aramco, which had invited interest from contracting companies in late January 2014, was expected to award the main deal in July the same year, but this was delayed again due to market conditions. Interested bidders have been invited to submit prices this year as the oil price stabilises around $50 a barrel and the government has finalised the details of its National Transformation Plan, which has reviewed and identified the projects that will proceed in the kingdom.