The UAE/Australia’s Dutco McConnell Dowell and the UAE’s Dodsal Group have emerged as frontrunners for Saudi Aramco’s Shedgum to Yanbu natural gas liquid (NGL) pipeline expansion project.

The two contractors have emerged as the lowest bidders on the scheme and Aramco is expected to make an award in February.

Dutco McConnell Dowell is the lowest bidder with a proposal of about $375m while Dodsal’s bid is hovering around the $400m mark. However, Dutco McConnell Dowell’s bid does have a limit for the excavation of rock and this is believed to have given its Indian competitor a chance of being awarded the contract.  

The pipeline will transfer NGLs from Shedgum to Yanbu Industrial City in order to supply essential feedstock for heavy industry.

The pipeline has a total length of 585 kilometres and the pipeline will have a diameter of 30 inches (76.2 centimetres). Aramco stated in 2013 that over 70 per cent of the materials needed for the scheme would be sourced locally from manufacturers.

Aramco is investing heavily in its master gas initiative which is aimed at transporting natural gas around the kingdom for industrial use and power production. MEED reported in October that the US’ Foster Wheeler had been awarded the the front-end engineering and design (feed) contract for a gas compression project that forms part of the company’s Master Gas System Expansion.

Saudi Aramco was not available for comment when contacted by MEED.