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China's Sepco-2 awards contract for Saudi Aramco's Jazan project

Dublin-based Shanahan Engineering has won work on Aramco's Jazan Integration Gasification project

China's Sepco-2 has awarded a contract to Ireland's Shanahan for work on a Saudi Aramco project [representational image].
China's Sepco-2 has awarded a contract to Ireland's Shanahan for work on a Saudi Aramco project [representational image].

Dublin-based Shanahan Engineering has won a commissioning services contract from Sepco-2, a China-based engineering, procurement, and construction company, for a Saudi Aramco gasification project in Jazan. Through the contract, Shanahan will work with Sepco-2 on the Jazan Integration Gasification Combined Cycle (JIGCC) Power Block project.

In a statement, Shanahan said its contract includes the supply of a commissioning management team, as well as its commissioning management programme, for the JIGCC project.

Upon completion, JIGCC will generate more than 2,500-megawatts of power across five blocks, using Siemens SGT-6000F technology. Shanahan said it would follow Saudi Aramco’s “stringent” health, safety, and environment, and quality standards for the commissioning project.

Commenting on the contract win, James Greany, chief executive officer and managing director of Shanahan Engineering, said the contract win “reaffirms” the company’s position in Saudi Arabia, where it has previously worked on two projects. One of these is PP12, a 2,175MW combined cycle gasification turbine (CCGT) plant in Riyadh that it worked on in 2016. Shanahan is also implementing commissioning work on PP13 and PP14, a combined 3,600MW CCGT in the Saudi capital for Saudi Electricity Company.

READ: Chinese firm to build two Saudi Aramco oil islands

Zhang Ting, project director at Sepco-2, said Shanahan had been selected “following a competitive bidding process”. This was due to “due to its robust techno-commercial proposal combined with its accumulated experience in commissioning combined cycle power plants, particularly in Saudi Arabia”.

September 2018 has seen numerous contracts awarded for Saudi Aramco projects – a trend that is, to an extent, indicative of the steady resurgence of global oil markets.

Early in the month, Saudi Aramco was reported to have prequalified six bidders for the construction of its $6bn (SAR22.5bn) Berri Offshore Oilfield Increment Programme project.

Scottish news outlet NewsBase had reported this May that the contract was “expected to be the largest job tendered this year among the five signatories of Aramco’s so-called long-term agreements (LTAs)”. This group, according to the report, included the US’s Dynamic Industries and McDermott; India’s Larsen & Toubro (L&T); Oslo-listed Subsea-7; the UAE’s National Petroleum Construction; and Italy’s Saipem.

Later in the same week, Baker Hughes, a GE company, was awarded a contract to work on Saudi Arabia’s Marjan oilfield, Saudi Aramco’s largest upstream project of 2018.

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Construction Week - Issue 729
Feb 14, 2019