Tecnicas Reunidas leads bidding for Aramco gas projects
KHOBAR—Tecnicas Reunidas has offered the lowest bids to build two gas projects planned by state oil giant Saudi Aramco.
While the Spanish engineering firm has made the lowest bids on the Haradh and Hawiyah gas compression stations and the Hawiyah gas plant, Italy's Saipem and Samsung E&C are also well placed to win the Hawiyah gas plant work.
Saudi Aramco plans to expand the processing capacity at Hawiyah by 1.3 Bscfd from 2.5 Bscfd.
The new gas compression plants and the expansion of the Hawiyah gas plant are expected to cost more than $4 B, industry sources have estimated.
Hawiyah and Haradh are part of Ghawar, the world's largest onshore oilfield.
Gas will play a key role towards the diversified energy mix which Saudi Arabia is keen to achieve by cutting the use of crude oil and liquids for power generation, while allocating more gas to fuel economic growth and industrialization.
The kingdom is targeting raising the use of gas in its energy mix to 70%, officials have said.
Despite falling oil prices, Saudi Aramco is pushing ahead with oil and gas projects that it has highlighted as a priority for the long term to keep the world well supplied with oil, while meeting domestic gas demand.
It plans to nearly double gas production to 23 Bscfd in the next decade.
(Reporting by Reem Shamseddine; additional reporting by Yuna Park in Seoul, Robert Hetz in Madrid and Stephen Jewkes in Milan; editing by Alexander Smith)
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