Técnicas Reunidas awarded contract to build new Saudi Aramco gas plant

gas plant in Tanajib

Saudi Aramco, the world’s largest crude exporter, has awarded contracts with a total value of $18 billion to increase production capacity at two offshore oil fields, even when the kingdom and its OPEC partners are currently limiting their output. The projects include the construction of a new gas plant in Tanajib, part of which was awarded to Técnicas Reunidas.

The Saudi state-owned oil company is set to increase its production capacity by 550,000 per day at its Marjan and Berri camps, it said in a statement.

Aramco awarded 34 contracts, half of them to Saudi firms, according to the document.

The company will increase its natural gas production by 2.5 billion standard cubic feet per day.

The contracts were awarded to McDermott International Inc., Italy’s Saipem SpA, Norwegian Subsea 7 SA, Spain’s Técnicas Reunidas SA, and China’s Petroleum & Chemical Corp among others.

Indian company Larsen & Toubro Ltd and SK Hyundai Engineering & Construction Co also landed come deals.

Project for a gas plant in Tanajib awarded to Técnicas Reunidas

In the announcements, Saudi Aramco informed that part of installations for its new gas plant in Tanajib will be built by Técnicas Reunidas for $3 billion.

The contract duration will be 44 months and include gas reception, storing, and compression, as well as recovery and fractionation of the liquefied natural gas produced.

The new facility will have a total capacity of 2.5 billion cubic feet of gas per day and 85,000 barrels of hydrocarbon condensate per day. This output will be used to supply the country’s state network, reinjection at offshore fields, and production of ethane, butane, propane, pentane, and other associated products for multiple customers.

Técnicas Reunidas, an engineering company specializing in the oil and gas production sector, started working in Saudi Arabia in 2003. Since then, it participated in the development of the Berri, Qatif, Abqaiq, Hawiyah; Khursaniyah, Hasbah, and Haradh production fields.

Expansion projects

Saudi Aramco, officially known as Saudi Arabian Oil Co., plans to bring about 1 million barrels a day of oil capacity online by 2023.

Saudi Arabia has the world’s largest reserves of conventional crude. For a long time, the kingdom has resorted to its prolific deposits to help balance the oil markets. Riyadh is seeking to maintain sufficient available capacity in order to have a quick response in case of shortage.

The Organization of Petroleum Exporting Countries and its allies, including Russia, agreed this month to extend the production cut agreement to 2020. The measure aims to boost prices, as the U.S. continues to increase supply.

In its statement, the company informed that the Marjan Field production will increase by 300 MBCD of Arabian Medium Crude Oil, a crude with an API gravity of 31° and 2.55% sulphur. Meanwhile, the Berri project will add 250,000 barrels of Arabian Light Crude (34° / 1.78%) per day from the offshore oilfield. Aramco more of the latter than any other type.

Socio-economic effects

More than 90 companies and institutions were invited to bid for the projects. Overall, 16 Saudi and international enterprises were chosen for the engineering, supply, and construction projects. Saudi companies account for 50% of the awarded contracts.

The projects are expected to create thousands of direct and indirect jobs, supporting Aramco’s efforts to locate and generate new work opportunities.

For more information, check Energía16

See also: Técnicas Reunidas awarded ExxonMobil’s refinery-expansion contract

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