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
  • Aramco Stadium races towards completion

    12 November 2025

     

    The Aramco Stadium in Khobar is moving forward at an impressive pace as the fast-track project races towards completion in 2026

    The 47,000-seat stadium will be the new home for the Aramco-owned Al-Qadsiah Club and a key venue for the 2027 AFC Asian Cup and the 2034 Fifa World Cup. 

    The project’s progress stems from detailed planning and an accelerated delivery strategy. The project was conceived in May 2023, with the design process, managed by Aramco, commencing shortly thereafter. 

    “We completed the design within six months,” said Mohammed Subhi, the Aramco Stadium’s project manager.


    The project advanced quickly due to thorough planning and a fast-track delivery approach. Initiated in May 2023, the design phase—overseen by Aramco—was completed within six months

    An early engagement approach with the main contractor – a joint venture of Besix and Al-Bawani – was instrumental in maintaining momentum. This partnership began early in 2024, allowing for collaborative input on critical construction elements. 

    This upfront collaboration minimised pre-construction time, ensuring a rapid transition to site work.

    Engineering challenges

    The stadium’s architectural design, inspired by the natural whirlpools of the Gulf and featuring interwoven transparent sails, presents significant engineering challenges, particularly in the structural steel and façade work. For spectator comfort, the stadium is equipped with full cooling systems and designed to the highest international standards.

    Logistics management is another crucial facet of the project, which is located in central Khobar. With thousands of workers on site, the movement of materials is tightly controlled to minimise community disruption. 

    “We control how many trucks can enter the site and at what time. For example, we cannot cast concrete during the day. It has to be after 6pm, up until the early morning,” said Subhi.

    A key priority on site is health and safety, an area where the organisation’s legacy from its oil and gas operations is clearly visible. Subhi explains that the principle of health and safety is part of the company’s DNA and is embodied in the deployment of advanced technology and rigorous standards, which have collectively resulted in over 10 million safe working hours to date.

    The project employs a sophisticated Smart Safety Command Centre (SCC), which utilises artificial intelligence-based monitoring and 24/7 surveillance. One key feature of the centre is the crane collision prevention system – a key technological advancement in heavy machinery coordination and a first for the region. 

    “We have tower cranes and crawler cranes talking to each other. The anti-collision system means cranes talk to each other without human interference, and they automatically shut down when they are too close to each other,” said Subhi.


    A key technological advancement is the crane collision prevention system, which means the cranes talk to each other and shut down if they become too close

    In addition to ground operations, the project is leveraging aerial technology to mitigate risk in high-altitude work.

    “We have used drones for the inspection of the cranes and inspection of the steel structure itself to minimise the risk of working at height,” said Subhi.


    Drones have been adopted on-site to mitigate the risk of working at height

    Worker welfare

    The project’s commitment extends beyond mere regulatory compliance to comprehensive worker welfare, establishing a high standard for construction sites in the region. 

    With current staffing reaching approximately 11,000 direct and indirect workers, welfare provisions are a core priority, linking directly back to Aramco’s corporate standards.

    In a region where extreme heat is a constant challenge, the project has implemented advanced heat stress management protocols. This includes the installation of heat sensors with alarm systems, mandatory work stoppage during peak heat hours and regular briefings on heat exhaustion symptoms. Fully air-conditioned rest areas are provided for breaks and meals.

    Aramco is also committed to developing national talent. A significant proportion of the staff are young, and about 20% of the team are women.

    The relationship with the joint-venture contractor is defined by collaboration rather than traditional client-contractor hierarchy. “We are one team, working together,” said Subhi. This approach has fostered a cooperative environment that is accelerating the on-site progress towards the 2026 completion goal. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15073939/main.gif
    Colin Foreman
  • Oman signs PPA for 125MW Dhofar 2 wind project

    12 November 2025

    Singapore's Sembcorp Utilities and local firm OQ Alternative Energy (OQAE) have won a contract to develop the 125MW Dhofar 2 wind independent power project in Oman.

    The contract was awarded by state offtaker Nama Power & Water Procurement Company (Nama PWP) under a 20-year power purchase agreement (PPA).

    Under the PPA, Sembcorp and OQAE will form a joint venture to build, own and operate the wind farm, which will supply power to Nama PWP once operational.

    The equity split will give Sembcorp 75% and OQAE 25%, a source close to the project told MEED.

    Nama PWP said that it will allocate a portion of contracted works for the Dhofar 2 project to Omani small and medium-sized enterprises under its in-country value programme.

    The project is expected to begin commercial operations in the third quarter of 2027.

    The facility, valued at about OR43m ($112m), will be located on a 12-square-kilometre site in Dhofar Governorate.

    The project comprises 20 Windey WD200 turbines, each with a 6.25MW capacity. Each turbine stands 215 metres tall and will be connected to the national grid via a 400kV substation.

    The development will provide clean electricity to more than 18,000 homes and will cut carbon dioxide emissions by about 158,000 tonnes a year.

    It is also expected to generate about 396,754 megawatt-hours and free up around 76 million cubic metres of natural gas annually.

    Sembcorp has over 1.1GW of energy assets in Oman. In September, the firm signed a new 10-year power and water purchase agreement with Nama PWP for its Salalah independent water and power plant.

    According to Nama PWP, the offtaker has contracted 26 water and desalination plants, exceeding $11bn in investment, over the past 15 years.

    Chief energy transition officer at Nama PWP, Abdullah Bin Rashid Al-Sawafi, said the company "plans to attract a further $5bn over the next five years, mainly in renewable energy and storage technologies".

    This includes an extra 9GW of renewable energy capacity by 2030, representing 60% of total contracted capacity.

    Oman aims to have 30% of its electricity generation from renewable sources by the same year.

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15073043/main.jpg
    Mark Dowdall
  • Hitachi wins Alexandria Raml tram systems deal

    12 November 2025

    Register for MEED’s 14-day trial access 

    Hitachi Rail has announced that it has won a contract related to the modernisation and upgrade of the Alexandria Raml tram network in Egypt.

    Hitachi Rail said it will deliver advanced signalling and communications systems, an operational control centre and supervisory control and data acquisition, security systems with CCTV cameras and access control, passenger information and on-board equipment.

    The contract was awarded by a joint venture of Hassan Allam and Arab Contractors.

    The project scope includes rehabilitating a 13.2-kilometre tram line, constructing a maintenance depot, developing elevated viaducts and upgrading 24 stations.

    The project will reduce journey times from 60 to 35 minutes by increasing the operational speed on the line from 11 kilometres an hour (km/h) to 21km/h. The project will also increase the hourly capacity from 4,700 to 13,800 passengers in each direction. 

    UK analytics firm GlobalData expects the Egyptian construction industry to grow by 6.5% in real terms in 2025, supported by investments in oil and gas, industrial and housing construction projects. According to the Central Bank of Egypt, the country’s average construction production index grew by 5.8% year-on-year in the first 10 months of 2024.

    GlobalData says the construction industry's output is expected to register an annual average growth rate of 8% in 2026-29, supported by investments in commercial, renewable energy and transport infrastructure projects, coupled with the government’s target of developing 10GW of renewable energy projects by 2028 under the Nexus of Water, Food and Energy Programme.

    The infrastructure construction sector is expected to expand by 4.4% in real terms in 2025 and record an annual average growth rate of 7% in 2026-29, supported by government plans to continue its spending on transport infrastructure, ports and terminals.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15073050/main.jpg
    Yasir Iqbal
  • Contract award nears for Al-Ula tram works

    12 November 2025

     

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Royal Commission for Al-Ula (RCU) is preparing to award the contract to build infrastructure for the tramway at the Al-Ula development.

    MEED understands that bid evaluation has reached advanced stages and the contract award is imminent.

    Contractors submitted revised bids for the scheme in August, as MEED reported.

    It is understood that consortiums were asked to propose self-funded financing arrangements for the project.

    The first phase of the tram scheme is a 22.4-kilometre-long line with 17 stations, operated by 20 trams. It will link Al-Ula International airport to five of the area’s historical regions.

    The scope of work includes the design and construction of a tram depot, tram tracks, technical buildings, station buildings and other associated infrastructure.

    In June, MEED exclusively reported that the RCU had asked firms to submit their final offers for a contract to build tramway infrastructure at the Al-Ula development.

    The RCU issued a request for proposals in June last year and received commercial bids for the project on 10 November.

    France’s Systra is the consultant.

    In October 2023, the RCU announced that France’s Alstom will supply rolling stock and systems for the Al-Ula tram scheme.

    The RCU unveiled an investment plan worth SR57bn ($15bn) to regenerate Al-Ula in April 2021. About $3.2bn has been allocated for infrastructure development, including the tram and renewable power generation.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15072614/main.jpg
    Yasir Iqbal
  • Contractors submit bids for $1.4bn Kuwait oil pipeline

    12 November 2025

    Register for MEED’s 14-day trial access 

    A low bid of KD419m ($1.4bn) has been submitted on an oil pipeline project in Kuwait, according to figures published by the country’s Central Agency for Public Tenders (Capt).

    The bid was submitted by local contractor Alghanim International General Trading & Contracting.

    The contract was tendered by state-owned upstream operator Kuwait Oil Company (KOC) and covers the construction of crude oil pipelines and associated works.

    The full list of bidders and prices is:

    • Alghanim International General Trading & Contracting – KD419m ($1.4bn)
    • Mechanical Engineering & Construction Company – KD422.5m
    • Al-Dar Engineering & Construction Company – KD425.7m
    • Combined Group Contracting Company – KD502m
    • Heisco – KD506.1m
    • Sayed Hameed Behbehani & Sons – KD674m

    Kuwait is trying to boost project activity in its upstream sector.

    The country’s national oil company, Kuwait Petroleum Corporation, is aiming to increase oil production capacity to 4 million barrels a day (b/d) by 2035.

    In August, Kuwait announced that it was producing 3.2 million b/d.

    Earlier this month, KOC said it was planning to spend KD1.2bn ($3.92bn) on its exploration drilling programme through 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15072150/main.jpg
    Wil Crisp