Safaniya cogen project on hold

24 July 2024

Saudi Aramco's Safaniya cogeneration independent steam and power plant (ISPP) project has been put on hold in line with the pause of the expansion of the Safaniya oil field in Saudi Arabia.

The facility was envisaged as the primary power source for the Safaniya central processing facility (CPF), which will provide fuel gas, desalinated water and steam condensate to the proposed cogeneration plant, treating the oily and process wastewater.

Aramco issued the tender for the contract for the Safaniya cogeneration ISPP facility in April 2023. The following month, it held a job explanation meeting and a site visit for the project.

The bid submission date was originally set for December 2023 before it was moved to March and then June this year.

The plant was expected to have a design capacity of 500-700MPPH steam and 300-400MW power generation. It also entails expanding a seawater reverse osmosis (SWRO) plant by 10,000 cubic metres a day (cm/d).

Aramco expected to implement the cogeneration project on a build-own-operate-and-transfer (BOOT) basis.

MEED understands that the electricity generated during the plant's steam production will be supplied to the CPF and offshore oil and water injection facilities through a new 230-kilovolt gas insulation station.

The Safaniya ISPP plant was expected to be commissioned in 2027 and was to remain in service as a capital lease for 25 years from the start-up date.

Japan’s Sumitomo Mitsui Banking Corporation (SMBC) and US-based White & Case were providing financial and legal advisory services to the project client. Germany’s Fichtner was providing technical consultancy services.

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Jennifer Aguinaldo
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