Aramco tenders remaining Jizan gasification packages

15 May 2013

Contractors have until mid-August to submit bids for $3bn-5bn project

Saudi Aramco has released most of the remaining tenders for the engineering, procurement and construction (EPC) packages at the proposed $3bn-5bn gasification project at Jizan in the southwest of the kingdom.

MEED reported in mid-April that the gasification package had been released to contractors, but the remaining packages had not yet been released.

The packages are:

  • Combined-cycle power plant
  • Offsites and utilities
  • Sulphur recovery

The bid deadline for the packages is the same as the gasification contract, 15 August. Award is expected by the end of 2013.

“The tenders have been released to contractors and the next few months will be about working on the bids,” says an oil and gas source based in Saudi Arabia. “This is one of the largest projects in the region in 2013.”

The combined-cycle power plant, offsites and utilities and sulphur recovery are all being released on a lump-sum turnkey basis. However, the air separation unit/oxygen supply is being released on a build-own-operate basis.

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 Group 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 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”.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.