Contractors still waiting for verdict on $450 tank expansion in Eastern Province of Saudi Arabia
The local Sabic Terminal Services Company (Sabtank) is expected to make a decision regarding the engineering, procurement and construction (EPC) contract at its $450m expansion at the Jubail Industrial Port by the end of this month.
Submissions from contractors have been with the client since the end of July. However, in August the five competing bidders were asked to resubmit prices after a change in the scope of works.
“Sabtank has been very quiet regarding this contract and none of the contractors seems to know the exact status, or who the favourite is for the project,” says a chemical industry source based in the Middle East. “Now we are hearing that an announcement will be made at the end of November.”
The contractors who have submitted bids are:
- China National Chemical Corporation (China)
- Hanwha Engineering & Construction (South Korea)
- Petrol Steel (Local/Singapore)
- Sinopec (China)
- Wison (China)
The main scope of the expansion is the construction of 37 storage tanks with a total capacity of more than 330,000 cubic metres. A handling unit will also need to be constructed, as well as berth facilities, substation, firefighting facilities and truck loading and unloading facilities. The tanks will be mainly used to store petrochemical products produced at the Jubail Industrial City before export.
Dutch port operator Vopak is the operator of the Sabtank facilities at Jubail and holds a 10 per cent stake, with Sabic holding the remainder. The existing facilities include almost 1.3 million cubic metres of capacity, which can be held in 77 tanks.
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