Hawiyah pipeline programme progresses

01 April 2005
Local and international contractors submitted bids on 26 March to Saudi Aramco for the lump-sum turnkey (LSTK) contract to build two pipelines under the Hawiyah natural gas liquids (NGL) recovery programme. The bid submission was followed a day later by Aramco receiving solicitations of interest (SoIs) from contractors for a second pipeline project under the programme. The bid deadline on the project to debottleneck the Shedgum-Yanbu east-west SHY-1 NGL pipeline has also been extended by one month, to late April (MEED 18:2:05).

Thirteen companies, including seven international contractors - Lebanon's Contracting & Trading (CAT), India's Dodsal, Cyprus-based Joannou & Paraskevaides (J&P - Overseas), Italy's Saipem, Russia's Stroytransgas, Suedrohrbauof the Netherlands and Turkey's Tekfen- are understood to have submitted bids for the estimated $25 million contract to carry out the first pipeline package under the Hawiyah programme.

The package covers two pipeline sections, the first of which is a new 24-inch-diameter, 57-kilometre-long NGL pipeline running from the planned new Hawiyah NGL plant to the Uthmaniyah gas plant. The second section will link the Uthmaniyah plant with the Shedgum gas plant through a 28-inch, 58-kilometre line. Mechanical completion is scheduled for April 2007.

Local and international contractors responded to Aramco's SoI by 28 March for another pipeline project under the Hawiyah NGL recovery programme, calling for the construction of three pipeline sections. The first section covers the construction of a 48-inch, 25-kilometre inlet and outlet line between the new Hawiyah NGL plant and the Haradh-Uthmaniyah gas line (HDUG-1), and a 56-inch, 1-kilometre section between the same plant and the Hawiyah-Uthmaniyah gas line (HUG-1). The second section calls for the construction of a 30-inch, 170-kilometre ethane and NGL pipeline linking the Shedgum and Jubail gas plants. The third section will supply ethane to Jubail-based industries through a 38-inch, 58-kilometre pipeline from Jubail gas plant.

Aramco plans to prequalify contractors interested in the project by 9 April, with a contract award expected by June. The pipeline projects will serve the Hawiyah NGL recovery programme, which covers the construction of a greenfield NGL plant at Hawiyah and the expansion of the Juaymah fractionation and Hawiyah gas plants (MEED 18:3:05).

Companies have been given until 26 April for the estimated $90 million LSTK contract to carry out debottlenecking work on the Shedgum-Yanbu east-west SHY-1 NGL pipeline. The successful contractor will increase the pipeline's throughput capacity to 425,000 barrels a day (b/d) from 300,000 b/d by installing an intermediate NGL pumping station with three 50 per cent combustion gas turbines at east-west pump station 6. Companies understood to be looking to bid include Saipem, Canada's SNC Lavalin,Europe's ABBand the local Arabian Bemco Contracting. The project is due to be completed within 12 months of the contract award. The SHY-1 pipeline runs from Shedgum in the Eastern Province to Yanbu in the west.

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