Frontrunner emerges for two Saudi fuel pipelines

04 September 2016

Saudi Aramco projects will connect Qassim to Hail, and Yanbu to Jeddah

Turkey’s Tekfen has emerged as the frontrunner to win contracts to build two fuel pipelines in Saudi Arabia, according to sources familiar with the schemes.

Saudi Aramco received engineering, procurement and construction (EPC) bids for the two projects from several companies in May and is expected to award the contracts in the coming month.

Bids were submitted for the Qassim to Hail pipeline on 31 May. The pipeline will run 220 kilometres to transport gasoline and diesel to the northwestern Hail region, reducing the need for tankers to supply fuel via road.

Tekfen has been selected from the five companies thought to be vying to win the EPC contract, according to sources.

Aramco is also planning to build a new bulk plant at Hail to store gasoline and diesel and distribute the products to the surrounding region. Several companies have been asked to submit bids for the main contract.

Tekfen is also understood to have been selected to construct pipelines connecting Yanbu to North Jeddah on the kingdom’s Red Sea coast. Several companies submitted EPC bids for the project on 18 May.

The scheme includes two pipelines that will transport oil products including gasoline, diesel and jet fuel from the refining hub of Yanbu to Jeddah, Saudi Arabia’s second largest city.

Saudi Aramco is expected to tender a pipeline connecting Yanbu to Hail later this year.

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

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