Nesma nets SHY-1 work

02 September 2005
The local Nesma & Partners Contracting Company was awarded in mid-August the lump-sum turnkey (LSTK) contract to carry out a first package on the debottlenecking of the Shedgum-Yanbu east-west-1 (SHY-1) natural gas liquids (NGL) pipeline. The two-year contract - which is worth in excess of $60 million - calls for the installation of an intermediate NGL pumping station with three 50 per cent combustion gas turbines at the east-west crude oil pump station 6 (MEED 14:5:04).

The design and build contract will also entail utility systems, the installation of a new NGL fuel metering system and the construction of living quarters. Nesma will carry out procurement, construction, pre-commissioning and commissioning and provide start-up assistance.

On completion, the pipeline's throughput capacity will increase to 425,000 barrels a day (b/d) from 300,000 b/d. The SHY-1 pipeline runs from Shouaiba in the Eastern Province to Yanbu in the west.

The client is Saudi Aramco, which is undertaking a major upgrade and expansion of its pipeline network. Bids were submitted in late August for the upstream and downstream pipelines contract to serve the Abu Hadriyah, Fadhili and Khursaniyah (AFK) onshore oil field development programme, which will produce 500,000 b/d of Arabian Light crude. Bidders for the estimated $200 million engineering, procurement and construction (EPC) contract include Lebanon's Contracting & Trading (CAT), Paris-based Technip, Tekfen of Turkey, Italy-based Techint and RH al-Marri Establishment (RHM), Faysal M Qahtani Establishment (FMQ)and Tamimi Construction, all local.

The project's upstream portion covers the construction of four pipeline sections with a total length of 110 kilometres and the installation of launchers and receivers serving the Khursaniyah central processing facilities (KPF) and the Khursaniyah gas plant (KGP). The downstream portion covers a 100-kilometre-long crude line linking KPF with the Juaymah terminal, a 103-kilometre NGL line between KGP and the existing Juaymah gas plant and a 48-kilometre gas line between KGP and the Berri gas grid junction.

Aramco is also evaluating bids for a major onshore pipeline maintenance contract. About 13 companies submitted bids in late July for the four-year contract, which is valued at up to $300 million. The contract involves the maintenance and upkeep of gas pipelines in 14 areas including Abqaiq, Qatif, Shaybah, and Shedgum.

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