meed-logo

line1 line2 line3
SIGN IN / REGISTER

Aramco negotiates with gas plants PPP bidders

18 July 2023

Register for MEED's guest programme 

Saudi Aramco is negotiating with two consortiums of bidders competing for one of the first public-private partnership (PPP) deals in its main oil and gas business.

The project involves modifying and upgrading sulphur recovery units (SRUs) at Aramco's gas processing plants located in the kingdom's Eastern Province.

Two consortiums submitted proposals by the deadline of 30 April for the scheme, which involves building tail-gas treatment (TGT) facilities at seven gas processing plants in the kingdom:

  • Vision Invest (Saudi Arabia) / Larsen & Toubro Energy Hydrocarbon (India)
  • Lamar Holding (Saudi Arabia) / Hyundai Engineering (South Korea) / Korea Overseas Infrastructure & Urban Development Corporation (South Korea) / Enerflex (Canada) / Brookfield (Canada) / Export-Import Bank of China (China)

The facilities are to be developed on a build, own and operate (BOO) or build-own-operate-transfer (BOOT) basis. This will make it one of Aramco’s first PPP projects in its main oil and gas business, if not the first.

Under the desulphurisation programme, Aramco expects third-party investors to build large downstream TGT units to collect and process tail gas discharged from SRUs at seven identified gas plants, MEED reported in December 2021.

Based on Aramco's initial evaluation of proposals, the consortium led by Lamar Holding pulled ahead in the race to win the contract to become the sole developer of the desulphurisation facilities, sources told MEED.

The Lamar-led consortium has submitted “considerably lower prices” than the other group being headed by Vision Invest, for both Zone I and II gas plants, according to sources.

“Lamar is the lowest bidder for both packages [Zones I and II], but Aramco is still in negotiations with the other consortium,” one source said.

“It remains to be seen whether one consortium wins both packages or Aramco chooses to divide them between the two groups,” another source said.

Aramco issued expressions of interest (EoI) for the scheme on 18 October 2021 and received EoI documents on 30 November that year. The Saudi energy giant then issued the main tender for the PPP project in May last year, as MEED reported.

Bidders were initially required to submit proposals by 30 September last year. The proposal submission deadline was moved to 15 December, then to 15 March this year, and again extended it to 31 March. Bids were eventually submitted on 30 April.

SO2 reduction campaign

The Aramco programme is in line with the regulations for emissions to air from stationary sources set out by Saudi Arabia’s Environment, Water & Agriculture Ministry. These stipulate that sulphur dioxide (SO2) emissions from stationary sources must not exceed 250 parts per million volume (dry and 0 per cent oxygen basis). They must also comply with the SO2 ambient emission limits or ground-level SO2 concentration.

The rollout of the desulphurisation scheme stems from Aramco’s goal to achieve net-zero carbon emissions by 2050 and is part of its environmental, social and governance initiatives, sources previously said.

Seven gas plants in Saudi Arabia’s Eastern Province have been identified from which tail gas needs to be treated for up to 99.9 per cent SO2 removal:

  • Berri
  • Haradh
  • Hawiyah
  • Khursaniyah
  • Shedgum
  • Uthmaniyah
  • Wasit

The scope of the scheme has been split into two packages, one source said. The first package covers gas plants in Aramco’s Zone 1 – Berri, Khursaniyah and Wasit – while the second package relates to units in Zone 2 – Haradh, Hawiyah, Shedgum and Uthmaniyah.

Along with fully financing the project, the developer will need to adopt one of the following commercial desulphurisation technologies approved by Aramco for the scheme:

  • TGT reduction absorption
  • Ammonia-based desulphurisation
  • Dry sorbent injection
  • Flue gas desulphurisation using gypsum

According to Aramco, the project will cover “the end-to-end application of the approved technologies, including but not limited to required plot space, utilities, market analysis and logistics of feedstock and byproduct, contractual arrangements, risks associated with each technology related to safety, process reliability and SO2 emissions compliance on a continuous basis”.

Aramco expects the common TGT facility to be operational by 2027.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11010795/main3124.jpg
Indrajit Sen

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Contractor groups prequalify for Dubai Metro Gold Line

    13 October 2026

     

    Six contracting groups submitted prequalification statements on 9 October for the contract to build Dubai Metro’s new Gold Line.

    The Roads & Transport Authority (RTA) issued the request for qualification notice for the project in June, as MEED exclusively reported.

    The consortiums formed to bid for the main contract are:

    • Alstom / China Railway Engineering Corporation / National Projects Construction / Dogus Construction (France/China/local/Turkiye)
    • CRRC / Limak / Mapa Group (China/Turkiye/Turkiye)
    • Hitachi / China Harbour Engineering Company / China State Construction Engineering Corporation (Japan/China/China)
    • Siemens / Petrojet / Concord Engineering & Contracting / Rowad Modern Engineering (Germany/Egypt/Egypt/Egypt)
    • Hassan Allam / IC Ictas / Siemens (Egypt/Turkiye/Germany)
    • Larsen & Toubro / Powerchina / Wade Adams (India/China/local)

    Dubai officially announced the Gold Line in April.

    In a post on social media site X, Sheikh Mohammed Bin Rashid Al-Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, said the project would cost about AED34bn ($9.2bn).

    The Gold Line will increase the Dubai Metro network’s total length by 35%. The project is scheduled to be completed in September 2032.

    The fully underground line will extend for more than 42 kilometres and include 18 stations. It will pass through 15 areas of Dubai and serve 1.5 million residents.

    The project is expected to connect more than 55 under-construction real estate developments.

    The Gold Line will begin at Al-Ghubaiba in Bur Dubai and terminate at Jumeirah Golf Estates. It will connect with the existing Red and Green lines and integrate with the Etihad Rail passenger network.

    The contractor will be responsible for the design and construction of all civil works, electromechanical equipment, rolling stock and rail systems. The selected contractor will also be required to support systems maintenance and operations during an initial three-year period.

    In October last year, MEED exclusively reported that the RTA had selected US-based engineering firm Aecom to provide consultancy services for the Dubai Metro Gold Line project.

    Stage one covers concept design; stage two, preliminary design; stage three, tender-document preparation; stage four, construction supervision; and stage five, the defects-liability period.

    READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20531469/main.png
    Yasir Iqbal
  • Egypt discusses technology cooperation with SLB

    13 October 2026

    Egypt is in talks with US-based oilfield services company SLB to expand technical cooperation in the country’s oil and gas sector, according to a statement from the Ministry of Petroleum & Mineral Resources.

    Egyptian Minister of Petroleum and Mineral Resources Karim Badawi met SLB chief executive Olivier Le Peuch in Riyadh, the ministry said.

    During the meeting, they discussed ways to strengthen their strategic partnership and expand cooperation in technology and digital transformation.

    They also discussed how SLB could support exploration and production activities, with the aim of increasing output and attracting further investment in Egypt’s oil and gas sector.

    Badawi emphasised the importance of extending the existing partnership with SLB, including its role in technology transfer and the development of technical capabilities in Egypt’s oil sector, according to the statement.

    He said Egypt should build on existing areas of cooperation and deploy advanced technological solutions to reduce exploration risk, increase recovery and production rates from existing fields, and improve operational efficiency.

    Badawi and Le Peuch also discussed progress on a seismic survey project being undertaken by SLB in partnership with France-based Viridien.

    The project includes an ocean-bottom node seismic survey covering about 95,000 square kilometres of Egypt’s eastern Mediterranean waters.

    The discussion focused on the data processing and analysis schedule, the steps required to prepare and release preliminary results, and the drilling schedule.

    Badawi and Le Peuch also discussed expanding the use of horizontal drilling technologies in Egypt. This would involve identifying suitable locations and developing a commercial and contractual model for their deployment.

    The Ministry of Petroleum & Mineral Resources and SLB are also exploring opportunities to expand the use of artificial intelligence in reservoir management and production optimisation.

    This work is being explored in partnership with the Egyptian General Petroleum Corporation and Egyptian Natural Gas Holding Company.

    READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20517735/main.jpg
    Wil Crisp
  • Kuwait tenders gas export pipeline

    13 October 2026

     

    State-owned upstream operator Kuwait Oil Company (KOC) has tendered a contract to develop a gas export pipeline.

    The 24-inch-diameter pipeline will extend from Booster Station 171 (BS-171) to the Intermediate Slug Catcher (ISC) facility in southeastern Kuwait, passing through the tie-in point known as TP-1.

    The bid deadline is 5 January 2027. A preliminary online meeting to discuss the project is scheduled for mid-November.

    BS-171 was inaugurated in February 2018. It serves as a central gas-treatment facility for gas and condensate from several gathering centres in West Kuwait and other areas.

    The feeder gathering centres include GC-17, GC-27, GC-28 and GC-16.

    BS-171 was Kuwait’s first facility designed specifically to handle acid gas.

    The ISC facility is located about 80 kilometres from BS-171.

    KOC announced plans to tender the project last year. At the time, it said that the scope would include the installation of bidirectional pig traps above the new pipeline.

    A pig trap is a section of piping that enables a pipeline pig – a device used to clean, inspect or maintain a pipeline – to be launched or received.

    The chosen contractor will need to provide:

    • Valves
    • Piping
    • Fittings
    • Civil services
    • Structural services
    • Electrical and instrumentation services
    • Tie-ins
    • Testing services
    • Pre-commissioning services
    • Commissioning services

    The ISC facility is a major gas-handling facility in Kuwait’s Burgan area. It receives sour gas from West Kuwait oil fields before the gas is transported onwards to the Mina Al-Ahmadi gas-processing facilities.

    READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20517716/main.jpg
    Wil Crisp
  • Developers prepare bids for 1GW Oman bess scheme

    12 October 2026

     

    Developers are preparing to submit bids for almost 1GW of standalone battery energy storage (bess) projects in Oman, a source close to the project has confirmed to MEED.

    The independent power producer (IPP) scheme includes the installation of five bess facilities with a combined power capacity of 950MW and storage capacity of 3,800MWh. Nama Power & Water Procurement Company (PWP) is procuring it.

    According to sources close to the project, a developer’s tender was floated in the summer. An initial bid submission deadline has since been extended, with bids expected to be submitted in the coming weeks.

    The largest project is a 500MW facility in Sohar, Al-Batinah North governorate, with a storage capacity of 2,000MWh. The Sohar facility is expected to connect to the grid at 220kV. The site covers approximately 149,535 square metres.

    Four further installations are planned at Al-Mabellah in Muscat governorate, Ayjah in South Al-Sharqiyah, the Jalan Bani Bu Ali wind farm site in South Al-Sharqiyah, and Sadah in Dhofar.

    The Al-Mabellah and Ayjah facilities are each planned to have a capacity of 100MW and storage capacity of 400MWh. Both are expected to connect to the grid at 132kV.

    The Jalan Bani Bu Ali installation is planned to have a capacity of 150MW and storage capacity of 600MWh. It is expected to connect to the Sadah wind farm and Jalan Bani Bu Ali wind farm substations.

    The Sadah installation is planned to have a capacity of 100MW and storage capacity of 400MWh. It is expected to connect to the Sadah wind farm substations at 132kV.

    US/India-based Synergy Consulting is the financial adviser for the procurement; Germany’s Fichtner is the technical adviser; and Germany-headquartered CMS is the legal adviser.

    Utility-scale storage

    In May, Oman’s Authority for Public Services Regulation (APSR) opened technical bids for a consultancy contract supporting a planned 1,000MW/four-hour bess project.

    As previously reported, APSR issued the request for proposals in April as part of wider plans to increase the share of renewable energy in the sultanate. 

    The sultanate’s first utility-scale solar photovoltaic (PV) plant integrated with battery energy storage (Ibri 3) entered construction at the beginning of the year, comprising a 500MW solar PV plant and a 100MWh bess system.

    Also in May, state offtaker Nama Power & Water Procurement Company signed a power purchase agreement with local firm O-Green for Oman’s first round-the-clock renewable energy project.

    Renewable energy is expected to increase from 4% of the generation mix in 2024 to 30% by 2030, driving the push for more utility-scale storage projects.

    Over roughly the same period, demand is forecast to double, reaching 10 terawatt-hours by 2031.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20511976/main.jpg
    Mark Dowdall
  • Frontrunner emerges for Saudi Arabia’s GCC rail link design

    12 October 2026

     

    French engineering firm Systra has emerged as the frontrunner to provide design consultancy services for the Saudi Arabian section of the GCC railway network, which is intended to link all six member states.

    The tender covers the concept, preliminary and issued-for-construction design stages. Saudi Arabia Railways (SAR) requires the selected consultant to review, update and complete the existing preliminary design.

    Consultants submitted proposals on 14 July, as MEED reported.

    The consultants who submitted bids included: 

    • AtkinsRealis with Khatib & Alami
    • Deutsche Bahn with ARX
    • Egis with Sener
    • Idom with Dar Al-Handasah
    • Systra

    Saudi Arabia’s section of the railway will start at Al-Khafji in the Eastern Province, near the border with Kuwait, and end at Al-Batha, on Saudi Arabia’s border with the UAE. 

    Tendering is also ongoing for a separate contract involving design management and review to oversee engineering works on the GCC railway network.

    The tender was issued on 9 September, with a submission deadline of 18 October, as MEED exclusively reported.

    The tender seeks a consultant to manage, audit and verify deliverables produced by SAR’s separately appointed design services consultant, rather than carry out the design itself.

    Construction will be tendered separately through competitive bidding once designs are approved.

    The GCC railway will run for about 672km inside Saudi Arabia, linking the kingdom’s existing network to Kuwait, Qatar, the UAE and Bahrain, with four sections of about 141km, 200km, 151km and 21km, respectively.

    The line is planned as a single-track, non-electrified corridor for mixed freight and passenger traffic, with a maximum axle load of 32.4 tonnes and passing loops for bidirectional working.

    GCC railway line

    Under the overall plan, the railway will run from Kuwait, pass through Dammam in Saudi Arabia, reach Bahrain via a planned causeway, and continue from Dammam to Qatar, the UAE and, ultimately, Muscat via Sohar in Oman. The railway is reported to cover about 2,186km in total.

    The route length within each member state is as follows:

    • UAE – 684km
    • Saudi Arabia – 672km
    • Oman – 306km
    • Qatar – 283km
    • Kuwait – 145km
    • Bahrain – 36km

    The railway is designed for passenger trains travelling at 220 kilometres an hour (km/h) and freight trains operating at 80km/h–120km/h.

    With high levels of project activity, governments in spending mode and renewed cooperation under the Al-Ula Declaration, the latest efforts to restart the GCC railway project may make more progress than previous attempts. If completed, the railway could prove transformational for a region that is globally connected but still divided by national borders.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20510318/main.gif
    Yasir Iqbal