Bids for Saudi fuel hub upgrades seen by June 28

SAUDI ARAMCO: Upgrade of bulk plants expected to cost up to $300million. (Getty Images)

Saudi oil giant Aramco expects to receive bids for the upgrade of around 14 bulk plants by June 28, two sources familiar with the plan said on Monday.

A bulk plant is a wholesale receiving and distributing facility for petroleum products. It includes storage tanks, warehouses, truck loading racks and relared elements.

"Some bulk plants are very old, they are updating them to increase capacity," a source close to the project said.

The expansion aims at raising the existing storage capacity of gasoline, diesel and fuel oil to meet increasing domestic demand, the sources said. The project is expected to cost between $200 million and $300 million, one of them said.

"The objective is to meet the gasoline and diesel demands growth until year 2016. Most bulk plants will experience capacity shortfalls starting from year 2012," another source said.

Oil Minister Ali al-Naimi said in Vienna last week that he saw Saudi energy demand rising at 7 percent per year.

The upgrade covers 14 bulk plants in several regions in the kingdom. They are located in the northwest; the southwest, the central region and the eastern province.

The world's top oil exporter said it will invest $400 billion in the coming five years mainly to build infrastructure. (Reuters)

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