Bid deadline for largest Saudi gas plant extended

12 companies bidding for onshore works have until October 24 2010

Saudi Aramco is investing in gas as part of a wider scheme to improve gas production in the Kingdom and cater for increasing domestic demand.
Saudi Aramco is investing in gas as part of a wider scheme to improve gas production in the Kingdom and cater for increasing domestic demand.

The deadline for contractors to bid for onshore construction packages for Saudi Arabia's largest gas plant, The Wasit, has been extended from September until October 24 2010.

Industry experts have estimated that the contract, which has not yet been confirmed by developer Saudi Aramco, could be valued at anything between $6bn and $8bn.

Previously, Saudi Aramco invited twelve prequalified companies to tender for the project - launched after the Kingdom announced a crude oil capacity expansion plan last year aimed at focusing on gas production and catering for increased domestic demand.

The packages include construction of a gas unit, a cogeneration power plant, a sulphur recovery unit with utilities as well as a natural gas liquids (NGL) fractionation plant.

These are in addition to offshore construction works related to the plant, for which engineering and construction companies have until November 7 to get their bids in.

To date, Canadian firm SNC-Lavalin has completed front-end engineering and design work for the plant, which on completion, is expected to process 2.5 billion cubic feet per day (cfd) of gas from the Arabiyah and Hasbah offshore sour gas fields.

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