Saudi Aramco Seeks Bid for Gas Plants Expansion

Author: 
Gulf Bureau
Publication Date: 
Thu, 2003-09-18 03:00

DHAHRAN, 18 September 2003 — The Saudi Arabian Oil Company has finalized its expansion plans for the Hawiyah and Juaymah gas plants and is seeking bids for a straddle plant at a combined cost of nearly SR5 billion.

According to Aramco officials, the straddle plant alone will cost nearly SR3.375 billion.

The proposed plant, with a capacity to treat 3,800 cubic feet of gas per day, will handle natural gas liquids (NGL) from the Haradh and Hawiyah gas plants.

For its Hawiyah plant, Aramco is seeking management consultants for the expansion from the present 1.6 billion cubic feet per day with an additional 800,000 cfd.

The company has also decided to increase the capacity of the 600,000 bpd Juaymah gas fractionation plant.

In addition to these projects, Saudi Aramco is negotiating with international oil companies over the SR11 billion Rabigh Refinery and ethanes cracker project. This project will produce polypropylene.

In addition to these, two major Saudi Aramco projects are under way to produce low-sulfur diesel.

This fuel will significantly cut emissions of toxic sulfur from diesel-powered vehicles and industrial plants.

According to Aramco sources, preliminary designs have been completed and lump sum turnkey contracts for detailed design, material procurement and construction have been signed for diesel hydro-treater complexes at Yanbu and Riyadh Refineries.

The new facilities will produce Arabian light crude distillates to produce diesel fuel with a sulfur content reduced from 1 percent to 0.5 percent. Both the projects are slated for completion by 2006.

Meanwhile, the Saudi Commerce and Economic Review, an official publication of the Eastern Province Chamber of Commerce and Industry, has reported that the Ras Tanura refinery’s new condensate distillation plant has completed its successful start-up and is now on stream.

This will increase the complex’s distillation capacity from 325,000 bpd to 525,000 bpd.

The project started in April 2001 and became fully operational on Aug. 15 this year.

Production from the new plant will help meet the domestic demands for gasoline, diesel, kerosene and naphtha. It will also allow the refinery to increase export of diesel and naphtha.

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