Saudi Aramco has awarded China Harbour Engineering Arabia a $550m engineering, procurement and construction contract for the water intake pipeline, water treatment facility and all accompanying pipelines and other units for its $8.5bn gasification project at Jizan in Saudi Arabia. 

The full scope of works includes the dredging of an intake canal, the intake structure and pump station, a 4-kilometre breakwall as well as all related offsites and utilities. Completion is expected in 27 months.

The company beat several other international contractors for the scheme. MEED reported in October that the package was due to be floated.

Saudi Aramco and China Harbour refused to comment when contacted by MEED. The contract will be the second package the Chinese port and harbour specialist has picked up at Jizan Economic City (JEC) in the southwest of the kingdom.

In September, the firm was awarded a $400m deal for the port dredging and reclamation works at JEC. The scope of works includes dredging a channel to the port, building a 12km breakwater and a jetty, as well as large-scale reclamation. The amount of dredging required is estimated at about 30 million cubic metres. The reclamation will provide the land for the construction of Aramco’s marine terminal, as well as for future expansions planned by JEC.

The bidding contractors

  • Archirodon (Geneva-registered)
  • China Harbour Engineering Arabia
  • Hyundai E&C (South Korea)
  • STFA Group (Turkey)
  • Tecnicas Reunidas (Spain)
  • Target Engineering (UAE)
  • Van Oord (Holland)

E&C=Engineering and construction. Source: MEED

The port dredging and reclamation works package is a vital component of the Jizan project, because it needs to be completed by mid-2015 to take delivery of much of the heavy machinery needed for the two world scale schemes under construction.

Aramco is investing at least $15bn in Jizan with state-owned oil major building a 400,000 barrels a day refinery and a 2,400MW integrated gasification combined-cycle (IGCC) power plant.

There is now only one package remaining to be awarded by Aramco for the gasification plant and that is the air separation unit (ASU)/oxygen supply package. Saudi Aramco is expected to make a decision regarding the contracting strategy for the ASU and oxygen supply shortly.