Saipemand Techint, both Italy-based, have been awarded two pipeline upgrade and construction contracts totalling $300 million. The client on both projects is SaudiAramco.

Saipem won the larger of the two contracts, worth an estimated $175 million, for the conversion of the existing Abqaiq-Yanbu oil looped line (AY-1L) into a gas pipeline (EWG-1). Saipem beat off competition from about 10 companies for the scheme, which calls for decruding, cleaning and purging the existing 56-inch-diameter, 1,170-kilometre-long AY-1L line, which runs parallel to the 48-inch Abqaiq-Yanbu (AY-1) pipeline.

The renovated pipeline will deliver sales gas to the growing industrial zone in Yanbu. The contract also calls for fabrication, construction, installation, pre-commissioning and commissioning of the EWG-1 line and related communication facilities. Contract duration is about 30 months. US-based Bechtelcarried out the project’s front-end engineering and design (FEED – MEED 10:6:05).

Techint was awarded the contract for the upstream and downstream portions of the Khursaniyah pipeline project. The downstream portion, the larger part of the estimated $125 million, two-year engineering, procurement and construction (EPC) contract, covers a 36-inch-diameter, 100-kilometre-long crude line linking the central Khursaniyah processing facilities (KPF) with the Juaymah terminal, a 24-inch, 103-kilometre natural gas liquids (NGL) line between the Khursaniyah gas plant (KGP) and the existing Juaymah gas plant, and one 40-inch, 48-kilometre gas line between KPF and the Berri gas grid junction. The scope of works also includes the installation of scraper launchers and receivers among other works.

The upstream element covers the construction of four pipeline sections with a total length of 110 kilometres and the installation of seven scraper launchers and receivers serving the KPF and the KPG (MEED 24:6:05).