State-run energy giant Saudi Aramco has awarded a €235m ($350m) construction deal to Dutch contractor Nacap-Suedrohrbau for a pipeline from the Ras Tanura refinery to Riyadh via Dhahran and Al-Hasa in the Eastern Province.
Nacap-Suedrohrbau won the front-end engineering and design (Feed) contract for the pipeline in April 2009. The US’ Jacobs Engineering working as its sub-contractor for the engineering study.
Aramco has negotiated a lump-sum turnkey contract price with the Dutch firm taking control of the project. Work is due to finish by December 2011.
Under the deal, the Dutch firm will build a 30-inch, 506-kilometre pipeline that will transport diesel and kerosene. It will also build three pump stations, metering systems and substation buildings as well as carrying out maintenance work.
Aramco is building the pipeline to alleviate a shortage of diesel in the capital.
Aramco constructed a multi-product pipeline in 1999 between Dhahran, Riyadh and Qasim.