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Sun 28 Feb 2016 12:54 PM

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Aramco invites tenders for $2bn clean fuels project

Project will provide Aramco with cleaner gasoline and diesel for domestic consumption and export

Aramco invites tenders for $2bn clean fuels project
Saudi Aramco is OPECs largest oil producer.

Saudi Aramco has released tenders for the delayed $2bn clean fuels project at Ras Tanura, The Wall Street Journal has reported quoting people familiar with the matter.

The project, which was split into two large packages, will provide Aramco with cleaner gasoline and diesel for domestic consumption and export.

The project will focus on revamping the existing facilities at the 550,000 barrel a day refinery, the largest in the Middle East. It will also add new units to lower the sulfur and benzene content of both fuels.

Package 1 covers the engineering, procurement and construction (EPC) of the naphtha processing facility, the main technical units as well as power distribution and control systems.

Package 2 covers offsites and utilities at the Ras Tanura Clean Fuels project and will include the EPC of the all tanks, substations and buildings at the project.

Eleven international contractors have been prequalified to bid for the tenders.

Bidders for both packages include South Korea’s Daelim, Hyundai Engineering & Construction (E&C), Samsung Engineering, and GS Engineering & Construction (E&C) as well as Japan’s JGC Corp., Italy’s Saipem and Spain’s Tecnicas Reunidas.

South Korea’s Daewoo Engineering & Construction (E&C) and Hanwha Engineering & Construction (E&C), India’s Larsen & Toubro and UK's Petrofac are bidding for package two.

The deadline for both technical and commercial work for both packages is May 11, with Aramco said to announce the winners in Q3, 2016, the WSJ reported.

The project is expected to start by 2016-end, meaning it is likely to be commissioned by early 2020.

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