Aramco moves ahead with SHY-1 pipeline upgrade

14 May 2004
Saudi Aramcois preparing to release request for proposals (RFP) documents in June for a lump-sum turnkey (LSTK) contract to carry out debottlenecking work on the Shedgum-Yanbu east-west SHY-1 natural gas liquids (NGL) pipeline. Local and international contractors submitted solicitations of interests by 1 May for the contract, which is worth about $70 million.

The successful contractor will increase the pipeline's throughput capacity to 425,000 barrels a day (b/d) from 300,000 b/d by installing an intermediate NGL pumping station with three 50 per cent combustion gas turbines at the east-west crude oil pump station 6. Other works include the provision of utility systems, the installation of a new NGL fuel metering system and the construction of living quarters.

The contractor will carry out procurement, construction, pre-commissioning and commissioning and provide start-up assistance. Companies will be given a five-week period to prepare their bids for the project, with a contract award scheduled for August. Project completion is due in September 2005. The SHY-1 pipeline runs from Shouaiba in the Eastern Province to Yanbu in the west.

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