Aramco receives bids for western oil products pipeline

19 May 2016

New infrastructure will transport gasoline, diesel and jet fuel between Yanbu and Jeddah

Saudi Aramco has received bids for the construction of its planned pipeline to transport oil products in the west of the kingdom, according to sources familiar with the project.

The Saudi state oil company tendered the engineering, procurement and construction (EPC) contract for the Yanbu-North Jeddah Products Pipeline in March and companies submitted bids on 18 May.

Companies bidding for the estimated $600m contract include:

  • Dodsal (UAE)
  • Engineering for the Petroleum & Process Industries (Enppi; Egypt))
  • Larsen & Toubro (India)
  • Nesma & Partners (Saudi Arabia)
  • Saipem (Italy)
  • Tekfen Construction (Turkey)

The project covers two pipelines running between the Red Sea refining hub Yanbu, and North Jeddah. The 20-inch pipeline one will transport gasoline and the 24-inch pipeline two will transport ultra-low-sulphur diesel and jet fuel.

The contract is expected to be awarded in the third quarter after Saudi Aramco assesses the EPC bids.

In January, Aramco awarded several EPC contracts worth a combined $1bn on its Master Gas System Expansion. The contracts were picked up by Al-Khobar-based Saudi KAD Construction.

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