Turkish contractor wins Aramco pipeline deal

19 September 2016

Firm is understood to have been selected ahead of five contractors for the estimated $300m project

Turkey’s Tekfen is understood to have been awarded the estimated $300m contract to construct pipelines connecting Yanbu to North Jeddah on the kingdom’s Red Sea coast, according to sources familiar with the matter.

The Saudi Aramco scheme includes two pipelines that will transport oil products including gasoline, diesel and jet fuel from the refining hub of Yanbu to Jeddah, Saudi Arabia’s commercial centre and the second largest city in the kingdom.

Several companies including the UAE’s Dodsal, Egypt’s Engineering for the Petroleum & Process Industries (Enppi), India’s Larsen & Toubro, local Nesma & Partners, Italy’s Saipem, had submitted bids for Engineering, Procurement and Construction (EPC) deal in May. The contract was expected to be awarded in the third quarter after EPC bids were evaluated, MEED reported at that time.

Tekfen has also emerged as the frontrunner for another $300m pipeline project that will connect the kingdom’s Qassim area to the Hail region, sources have told MEED. The bids for the pipeline, which will run 220 kilometres to transport gasoline and diesel to the northwestern Hail region to reduce the need for road transportation to supply fuel, were submitted on 31 May.

Tekfen has been selected from the five companies thought to be vying to win the EPC contract, according to sources.

Saudi Aramco, the state-controlled oil and gas giant, is also planning to build a new bulk plant at Hail with an estimated cost of $300m to store gasoline and diesel and distribute the products to the surrounding region. Several companies have been asked to submit bids for the main contract.

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