Albawani joins Jafurah water developer team

24 August 2023

Local contracting firm and utility developer Albawani has joined the consortium that won the contract to develop a seawater desalination plant – which includes a water distribution network – for the Jafurah gas development scheme in Saudi Arabia. 

Saudi Aramco awarded a team comprising local companies Lamar Holding and Mowah Company the contract earlier this year, as MEED reported.

The contract is valued at SR2.6bn ($693m).

The developer team signed the water-purchase agreement with Saudi Aramco a few weeks ago, with financial close expected shortly, according to a source close to the project.

China’s Sepco is the project’s engineering, procurement and construction (EPC) contractor.

Aramco received two bids for the contract in July last year. Local firm Aljomaih Holding Company was the other bidder. 

The Jafurah seawater reverse osmosis desalination plant has a design capacity of 80,000 cubic metres a day. It also includes a substantial water distribution network component, understood to extend 200 kilometres, as well as power and utility facilities.

Aramco received prequalification applications from interested bidders in August 2020.

The Jafurah gas development is part of Aramco’s $3.2bn unconventional resources programme, aiming to develop shale gas in three areas. Jafurah lies southeast of Ghawar, the world’s largest conventional oil field.

In July last year, Aramco issued a letter of award to Korea Electric Power Corporation (Kepco) for the contract to develop an independent steam and power plant (ISPP) catering to the gas development project.

The proposed plant will have a power capacity of 270-320MW and a low-pressure (LP) steam demand of 77-166 thousand pounds an hour (klb/hr) and high-pressure (HP) steam demand of 29-126 klb/hour by 2023.

The LP and HP steam demand will increase to 283-373 klb/hr and 66-321 klb/hr by 2027, respectively.

Aramco has appointed Sumitomo Mitsui Banking Corporation (SMBC) as financial adviser for the independent utility schemes catering to the development.

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Jennifer Aguinaldo
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