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Aramco extends Safaniya cogen bid deadline

18 September 2023

Saudi Aramco has extended by three months the tender closing date for a contract to develop a cogeneration independent steam and power plant (ISPP) project in Safaniya.

It now expects to receive bids by December in lieu of the previous bid deadline of 17 September, according to a source close to the project.

Aramco held a job explanation meeting and site visit for the Safaniya ISPP project in May.

Aramco issued the tender for the contract for the planned cogeneration ISPP facility, which will cater to Aramco's Safaniya central processing facilities (CPF), in April.

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

Under the current plan, the Safaniya CPF will provide fuel gas, desalinated water and steam condensate to the proposed cogeneration plant, treating the oily and process wastewater.

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

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

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

It is understood bidders are required to provide committed funding for at least 50 per cent of the project's full senior debt requirement upon the tender closing date.

The facility is envisaged as the primary power source for the Safaniya CPF.

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

Ongoing cogen projects

In July last, Korea Electric Power Corporation (Kepco) won the contract to develop Aramco’s Jafurah cogeneration ISPP project.

The 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.

Construction work is under way for Aramco’s Tanajib ISPP and desalination plant. Aramco selected a team comprising Japan’s Marubeni and the UAE-based Abu Dhabi National Energy Company (Taqa) to develop the project in 2020.

On 19 April, Saudi Aramco Total Refining & Petrochemical Company (Satorp) received proposals for the contract to develop a cogeneration ISPP serving the Amiral petrochemicals project in Jubail.

It is understood that Satorp has issued a conditional award letter to the preferred bidder for the contract, a team comprising Japan's Jera and the UAE's Abu Dhabi National Energy Company (Taqa).

The facility is expected to have a power generation capacity of 470MW.

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Jennifer Aguinaldo

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