DHAHRAN, 27 October 2004 — The Kingdom’s growing petrochemical industries and Saudization efforts get a boost as Saudi Aramco announces plans to increase production of natural gas liquids (NGL) and ethane for use as available feedstock through a series of new construction projects.
Called the Hawiyah NGL Recovery Program, Saudi Aramco plans to expand existing plants and add pipelines in addition to construction of a new recovery facility near the Hawiyah Gas Plant atop the sprawling Ghawar Oil Reservoir in the Eastern Province.
Saudi Arabia already is the world’s largest exporter of NGL products, but the new program, with completion of all project components by 2007, will make available hundreds of thousands of barrels daily of additional petrochemical feedstock.
Of particular interest is Saudi Aramco’s project creation to maximize Saudi employment in the engineering, construction and subsequent operation of the plants. Planners have included Saudi employment requirements in the project specifications and are encouraging bidders to include Kingdom-based engineering firms in the design phase.
Another keystone of this lump-sum turnkey project is the emphasis of teamwork from its inception. Through regular meetings with international contractors, Saudi Aramco hopes to improve the construction process and anticipates cost savings and logistical improvements through the ideas and observations of both Saudi Aramco employees and contractors working on the project. Mohammed A. Juwair, general manager of southern area projects management, calls the association a partnership. “I say partnership because, over the years, Saudi Aramco has demonstrated unwavering commitment to establishing meaningful relationships with international contractors, manufacturers and suppliers,” Juwair told contractors at a recent meeting where bids were being sought.
“These alliances have been built on trust...trust generated through understanding and cooperation. The same commitment will serve as the defining characteristic of our partnership on the Hawiyah NGL Program,” said Mohammad A. Hammad, manager of the Hawiyah NGL Recovery Project.
According to Saudi Aramco estimates, the teamwork concept already is paying off. The preliminary engineering, conducted by Jacobs Canada, identified cost savings of more than $200 million.
Five international contractors are competing in the bidding due in early January 2005. Site preparation is already under way. Company officials expect to award the first contract in March 2005.
