Saudi Aramco, the world’s biggest oil exporter, has received bids for construction of the estimated $300m Hail bulk plant, according to sources familiar with the matter.

Prequalified bidders submitted proposals for the engineering, procurement and construction (EPC) contract on 4 September, after Aramco declined the contractors’ request to extend the bid deadline.

The contractors had requested an extension to the bid deadline as the project was not tendered until June, and with holidays in July the bidders did not have enough time to prepare their submission.

The bidders prequalified by Aramco were understood to include:

• Dragados (Spain)
• Gama (Turkey)
• JGC Corporation (Japan)
• Larsen & Toubro (India)
• Nesma & Partners (local)
• Punj Lloyd (India)
• Sinopec Petroleum Engineering Corporation (China)
• Techint (Italy)
• Tekfen Construction (Turkey)

The scope of work on the project includes construction of storage facilities for diesel and gasoline of up to 300,000 barrels, and building associated infrastructure and support buildings for the scheme.

Presently, the Hail region acquires its gasoline and diesel requirement from the Qasim bulk plant, situated 300 kilometres away.

Aramco also plans to construct a 220-kilometre pipeline to connect the Qassim area to Hail in the northwestern region. Bids for the pipeline to transport gasoline and diesel were submitted on 31 May, and Turkey’s Tekfen emerged as the frontrunner for the EPC contract, MEED reported on 4 September.

The state-controlled oil and gas giant may also tender another pipeline connecting Yanbu with Hail later this year, sources told MEED.

Demand for diesel and gasoline in the Hail area is forecast to rise by 3 per cent a year, which convinced Aramco to revive the project in 2014 after it was put on hold for several years.

Aramco had invited interest from contracting companies in late January 2014, and was expected to award the main contract in July the same year. However, it was delayed again due to market conditions. Interested bidders were invited to submit bids this year again as oil prices have stabilised around $50 a barrel and the government has finalised the details of its National Transformation Plan, which has reviewed and identified the projects that will proceed in the kingdom.