Aramco lets contracts for pipeline works

10 March 2006

Saudi Aramco has awarded three engineering, procurement and construction (EPC) contracts totalling $525 million for the maintenance of gas and natural gas liquids (NGL) pipelines and the supply and installation of new facilities (MEED 24:6:05).

Saudi Aramco has awarded three engineering, procurement and construction (EPC) contracts totalling $525 million for the maintenance of gas and natural gas liquids (NGL) pipelines and the supply and installation of new facilities (MEED 24:6:05).

The largest contract, worth an estimated $300 million, was awarded to the local RH al-Marri Establishment (RHM), Lebanon's Contracting & Trading (CAT) and the Netherlands' Suedrohrbau. Called onshore maintenance, the five-year gas pipeline contract involves the servicing and upkeep of gas pipelines in 14 areas in the kingdom, including Abqaiq, Qatif, Shaybah, Shedgum and Uthmaniyah.

Suedrohrbau has also been awarded an estimated $200 million contract covering the second pipeline section on the Hawiyah NGL programme. The scope of works includes: the installation of a 48-inch diameter, 25-kilometre-long inlet and outlet between the Hawiyah NGL plant and Haradh-Uthmaniyah gas-1 (HDUG-1) facility; a 30-inch, 170-kilometre gas pipeline and NGL line linking the Shedgum and Jubail gas plants; and a 38-inch, 58-kilometre pipeline from Jubail gas plant to industries based in Jubail industrial city. The local Faisal M Qahtani Establishment is already carrying out the first pipeline section under a $19 million contract awarded in late 2005.

CAT has also been awarded an estimated $27 million contract for the construction of an ethane pipeline between Juaymah gas plant and Jubail. Known as the gas plant to Jubail industries ethane line project, the scope of works covers the construction of a 38-inch, 56-kilometre ethane line looped with two existing pipelines for the transport of 820 million cubic feet a day of gas to Jubail industrial city. Other works include a right-of-way road along the new pipeline, the removal of two existing pipeline sections and related civil works.

An award is imminent for the contract to supply and install a 42-inch-diameter, 32-kilometre-long seawater transfer pipeline between UWSS 1 and UWIPS 3 pumping stations at Abqaiq and Uthmaniyah respectively. About five companies priced the estimated $30 million EPC contract, which will also include demolishing the existing corroded pipeline. The bidders include Al-Rashid Contracting Company and Tamimi Construction, both local, Turkey's Tekfen, Athens-based Consolidated Contractors International Company (CCC) and CAT.

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