News Post
Saudi cleaner fuels project harvests foreign bids to build
(Reuters) Foreign engineering companies have bid to build Saudi Aramco's clean fuels project at the state oil giant's Ras Tanura refinery, industry sources told Reuters.
The bid deadline was July 17 for the $2 B scheme that will remove sulfur from refined oil products and is part of a drive by the kingdom to meet stricter environmental standards in export markets.
The project is split into two packages, one which includes the clean fuels units and the other for the supporting utilities and offsites.
Companies which bid for both packages, sources said, were:
- Japan's JGC
- South Korea's GS
- Hyundai Engineering and Construction
- Samsung Engineering
- Tecnicas Reunidas
Companies that only bid for the utilities and offsites package were:
- UK's Petrofac
- India's Larsen and Toubro
Both Samsung Engineering and Hyundai Engineering & Construction confirmed they had bid for both packages but declined to give other details. A spokesman for JGC in Yokohama said the company is also interested in the project.
The Ras Tanura project, including a naphtha hydrotreater, was to be part of a second phase of upgrades to Aramco's refineries and was originally due to go on stream in 2016.
There had been fears the project would be scrapped, part of a long list of schemes scrapped by global oil majors which have been paring back investments to cope with lower oil prices. Three rounds of bidding has contributed to the belief the project would be scrapped.
Saudi Aramco has said it is proceeding with its key projects. Chief Executive Amin Nasser saying last week it was evaluating the project at its largest and oldest oil refinery in Ras Tanura.
Last week, Aramco signed deals to build a $13.33 B gas project in Fadhili and has said more projects are in the pipeline to keep up with growing gas demand needs for power generation and industry.
Reporting by Reem Shamseddine, Karolin Schaps, Joyce Lee, Yuka Obayashi; Editing by William Hardy
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