Aramco mulls gas supply options

13 September 2002

Saudi Aramcois waiting for a final decision on the gas initiative before inviting four companies to bid for the front-end engineering and design (FEED) package for an estimated $900 million straddle plant. The plant will handle mainly natural gas liquids (NGL) from the Haradh and Hawiyah gas plants, and any gas produced in the concession area now within core venture 1 of the gas initiative (MEED 21:6:02).

Aramco is expected to invite ABB Lummus Global, Bechtel, Foster Wheeler Corporationand Halliburton KBR, all of the US, to bid for the FEED. A tender is expected to be issued in the fourth quarter.

The company is then expected to tender a major conversion of the East-West pipeline to carry gas as well as oil. The estimated $800 million project will follow the 2001 conversion by Italy's Saipemof the AY-1 pipeline to take an estimated 300 million cubic feet a day of gas to the Western Region.

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