24/08/2017 07:34 AST
Saudi Aramco has received bids from international engineering companies to build gas booster compressor stations at Haradh and Hawiyah, industry sources said, as the country plans to diversify its energy mix.
The contracts are part of a $4 billion scheme to increase gas production in the country for domestic consumption.
Saudi Arabia’s domestic gas demand has been rising mainly due to the growth of industrial sectors, which the country wants to develop further.
Last week, Asian and European companies submitted bids for the expansion of the Hawiyah gas plant. Aramco plans to expand the processing capacity at Hawiyah by 1.3 billion standard cubic feet per day (scfd). It currently processes 2.5 billion scfd of gas.
The companies that have made bids are: South Korean Hyundai Development Co Engineering & Construction (HDEC), GS Engineering and Construction, Spain’s Tecnicas Reunidas, Italy’s Saipem, Chinese Shandong Electric Power Construction Corp (SEPCO), India’s Larsen and Toubro (L & T), Taiwan’s CTCI and Britain’s Petrofac Taiwan’s CTCI said they had made a bid for the project, declining to give details.
Hyundai Development Co Engineering & Construction said the company submitted the bid, expecting results to be out at the end of the year or early next year.
TR was not available for comment and Petrofac provided no comment.
Saudi Aramco did not immediately respond to an emailed request for comment.
Saudi Aramco is implementing a two-phase plan to expand its Master Gas System, built in the mid-1970s to gather and process associated gas from oil wells for domestic industry.
It is scheduled to complete the first phase of the capacity expansion of system by the end of this year by installing facilities, including the booster compressor stations.
A second phase of expansion of the MGS will bring capacity up to 12.5 billion standard cubic feet per day in 2019.
Saudi wealth fund said to hire $111b-portfolio chief
Dubai: Saudi Arabia’s sovereign wealth fund, which is being transformed into a $2 trillion investment giant, hired Rashed Sharif as head of domestic investments, according to two people familiar with the matter. Sharif, previously chief executive officer of Riyad Bank’s investment-banking unit, will be responsible for managing the Public Investment Fund’s $111 billion portfolio of Saudi assets, the people said, asking not to be identified as the information is private. He will report to the fund’s managing director, Yasir Alrumayyan, they said.
PIF, as the fund is known, plans to become the world’s largest when the government gives it ownership of Saudi Arabian Oil Co. along with the proceeds from the oil producer’s initial public offering, expected to be the biggest listing ever. Saudi Crown Prince Mohammed Bin Salman wants to remodel the kingdom into an investment powerhouse to reduce its dependence on oil.
The fund has already started to make large international deals, including a commitment to put $20 billion into a US infrastructure fund managed by Blackstone Group LP, up to $45 billion in a technology investment fund managed by SoftBank Group Corp., and a $3.5 billion stake in Uber Technologies Inc.
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