Riyadh, Yanbu hydrotreater contracts signed

08 August 2003
Saudi Aramcoon 6 August signed contracts with Paris-based Technip-Coflexipand Spain's Tecnicas Reunidasfor the project to install new diesel hydrotreaters at its Riyadh and Yanbu refineries. The engineering, procurement and construction (EPC) contracts are estimated to total $380 million (MEED 24:1:03).

Technip-Coflexip's contract, valued at $160 million-170 million, centres on the installation of a 45,000-barrel-a-day (b/d) unit at Riyadh. Tecnicas Reunidas has been awarded the larger, 95,000-b/d Yanbu unit, under a contract worth about $220 million. The contracts came into force with immediate effect. Other bidders for the work were Germany's Uhde, Italy's Snamprogetti, Japan's JGC Corporationand Canada's SNC Lavalin.

Both hydrotreater units are due to be installed by the last quarter of 2005, with full production slated for early 2006. The US' Foster Wheeleris providing project management consultancy (PMC) services on the scheme.

The project will enable the refineries to switch to lower-sulphur diesel production in 2006 as part of a government initiative to improve the air quality in the kingdom's major cities.

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