Saudi Aramco, the biggest oil exporter in the world, could tender a new pipeline to connect Red Sea industrial hub of Yanbu with the kingdom’s northwestern Hail region, according to sources familiar with the matter.

Aramco has yet to officially disclose either the timing or the size and scope of the project, however, the market sources said the company plans to invite proposals from engineering procurement and construction (EPC) contracts to build a product pipeline later this year.

Aramco, the state-controlled oil and gas giant, is building a $300m bulk plant in Hail and has pre-qualified eight local and international contractors to submit bids for bulk plant. They are scheduled to submit proposals for the EPC deal by 4 September, however several bidders told MEED last week they have requested for an extension in the big deadline.

Aramco is also already building another pipeline to connect Qassim to the Hail region as well. The bids for pipeline, that will run 220 kilometres to transport gasoline and diesel to the Hail, were submitted on 31 May. The pipeline will reduce the need for tankers to supply fuel via road.

Turkey’s Tekfen is the frontrunner of five companies thought to be vying to win the EPC contract.