A Review of the Nigerian Energy Industry

Pair ‘win $4.7bn Fadhili plant deals’

7 September 2015, News Wires – Spain’s Tecnicas Reunidas and Petrofac of the UK have between them scooped $4.7 billion of contracts to build the new Fadhili gas plant for Saudi Aramco, according to a report.

Saudi Aramco LogoThe pair beat off competition from the likes of Italian player Saipem and South Korean duo Daelim Industrial and Hyundai Engineering & Construction to between them lands the three coveted packages, Reuters reported, citing unidentified industry sources.

A host of companies early in the summer submitted bids – either solo or in consortia – to build the facility that will process gas from Khursaniyah and Hasbah, nearly doubling the capacity of an existing plant at Fadhili.

The project was split into three packages, with Tecnicas Reunidas landing the two packages that it competed for on its own: the gas processing unit worth up to $2 billion; and utilities and offsite facilities, worth up to $1 billion, Reuters said.

Petrofac won the deal worth up to $1.7 billion for the sulphur recovery package, the news wire continued.

Upstream reported in January that Saudi state giant Aramco had pre-qualified nine European and Far Eastern companies to compete for the work, although bids at that time were expected to be submitted by 15 April.

The pre-qualified companies were Saipem, Tecnimont, Tecnicas Reunidas, JGC Corporation, SK Engineering & Construction, GS, Hyundai, Daelim and CTCI of Taiwan.

The project is part of Saudi Arabia’s effort to increase its gas production capacity to 10 billion cubic feet per day and beyond in a bid to meet soaring domestic demand.

Foster Wheeler carried out the front-end engineering and design study for the scheme and will provide project management for the EPC phase.

Its workscope also includes the onshore Khursaniyah upstream facilities, downstream Fadhili pipelines and various associated facilities.

The project is set to cost several billion dollars and, according to Aramco, will be on stream by 2019.

Saudi Arabia plans to double its natural gas output by 2030, with production scheduled to reach 9.6 Bcfd by the end of 2016.


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