Saudi Aramco has released the tender for the gasification package at the proposed $3bn-5bn gasification project at Jizan in the southwest of the kingdom.

MEED reported in February that the initial prequalification process called for contractors with extensive experience in gasification technology to express an interest in the engineering, procurement and construction (EPC) contract. However, many of the companies have now either formed consortiums to bid for the package or will provide engineering services for an EPC contractor who is able to bid more competitively. 

“Some companies are bidding with no partner, but it is likely that they will need to call upon an engineering consultancy [with gasification experience] to make a contribution,’ says a contracting source based in Saudi Arabia.  

Companies bidding for the gasification package include:

• CB&I Lummus/Petrofac (US/UK)
• Daelim Industrial (South Korea)
• Foster Wheeler/Hyundai Heavy Industries (US/South Korea)
• GS Engineering & Construction (South Korea)
• Hyundai Engineering & Construction (South Korea)
• JGC Corporation (Japan)
• KBR/China Huanqiu Contracting & Engineering Corporation (US/China)
• Saipem (Italy)
• Samsung Engineering (South Korea)

The bid deadline for the package is 15 August. An award is expected by the end of 2013.

The gasification process works by hydrocarbons such as coal or heavy oil being mixed with oxygen to produce synthesis gas (syngas). This is then used to fire a turbine and create power.

The UK/Dutch Shell is providing the gasification and acid gas removal technologies and will also be providing engineering services on the scheme. According to Shell, the project will have the largest gas and residue gasification units in the world when completed.

The other packages for the project have not been released yet. They are:

• Air separation unit/oxygen supply
• Combined-cycle power plant
• Offsites and utilities
• Sulphur recovery

The scope of works for the entire project is the construction of an integrated gasification combined-cycle (IGCC) power plant, which will have a capacity of 2,400MW.

The plant will supply the $7bn Jizan refinery project with power and Aramco is also hoping it will attract new industries to the JEZ.

The US’ KBR is carrying out the front-end engineering and design (feed) as well as the project management consultancy (PMC) for the refinery and power plant.

MEED reported in March 2012 that Aramco was to take over the major infrastructure projects at JEC in order to speed up their development.

In early April 2013, it was reported in the kingdom that the Saudi Arabian General Investment Authority (Sagia) had dropped previous developers, the local Saudi Binladin Group and Malaysia’s MMC Corporation, “with immediate effect”.