Aramco lets contracts for Fadhili gas project

Saudi Aramco has let a series of new contracts for development of the Fadhili gas program in the eastern province of Saudi Arabia, north of Jubail.

Aramco signed four major contracts for development and execution of the megaproject with a mix of service providers in a ceremony on July 20, the state-owned company said.

The latest contract awards, which involve engineering, construction, procurement, and ancillary services for components of the project, include:

• Larsen & Tubro Ltd. for offshore facilities.

• Saudi KAD Contracting Co. for downstream works.

• Saudi Electric Co. and Engie Group PLC for a combined heat and power plant.

• Mohammed I. Al Subeae & Sons Investment Holding Co. for a residential camp.

Aramco disclosed no further details regarding either the value or scope of work to be covered by the individual contracts.

These four contracts join 10 major contracts previously awarded for the gas project (OGJ Online, Nov. 24, 2015; Dec. 20, 2013).

To be developed at a cost of more than 50 billion riyals, the project comes as a key component of the kingdom’s master gas system, and together with Aramco’s two other new major gas projects Wasit and Midyan, will boost Saudi Arabia’s nonassociated gas processing capacity by more than 5 bcfd and lift overall natural gas supplies to more than 17 bcfd by 2020, Aramco said.

Specifically, Fadhili will process a total of 2.5 bcfd of nonassociated gas, including 2 bcfd of Hasbah offshore gas and 500 MMcfd of Khursaniyah onshore gas to produce 1.5 bcfd of sales gas.

Designed for a maximum sulfur recovery of 99.9%, the Fadhili gas processing plant also will use tail gas treatment to produce about 4,000 tonnes/day of sulfur.

The gas plant additionally will supply 470 MMcfd of gas to an adjacent cogeneration power plant, which will provide Fadhili with power and steam requirements as well as supply 1,100 Mw of electricity to the domestic grid.

Due to be Aramco’s first project to run on low-btu gas, Fadhili is scheduled for startup by yearend 2019.

Aramco said it also is exploring opportunities to improve environmental performance at Fadhili, which could include future construction of new plants for recovery helium and carbon dioxide.

Contact Robert Brelsford at rbrelsford@ogjonline.com.

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