Saudi Aramco has awarded a deal to Dutch contractor Nacap-Suedrohrbau for a pipeline running from the Ras Tanura refinery to Riyadh via Dhahran and Al-Hasa in the Eastern Province.
Under the deal, the contractor will build a 30-inch, 506-kilometre pipeline, which will transport diesel and kerosene along with the construction of three pump stations, metering systems, substation buildings and maintenance.
A source at Nacap-Suedrohrbau says the company has issued a contract to the US' Jacobs Engineering to carry out the basic engineering study for the pipeline.
He adds that Aramco is building the pipeline to address a shortage of diesel in the capital.
During the initial phase, Nacap-Suedrohrbau will develop the front-end engineering and design (FEED) as part of a joint project management team with Aramco.
The two firms will then negotiate a lump-sum turnkey contract price with the Dutch firm assuming control of the project. Work is due to finish by December 2011.
Aramco constructed a multi-product pipeline in 1999 between Dhahran, Riyadh and Qasim.
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