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
  • Egyptian contractor wins Abu Dhabi Ramhan Island deal

    4 September 2026

    Egypt-headquartered contractor Rowad Modern Engineering has been awarded the main works contract for the Marina Apartments project on Ramhan Island, Abu Dhabi.

    The contract was awarded by the local firm Eagle Hills, which is led by Mohamed Alabbar, the founder and chairman of Emaar Properties.

    Rowad’s scope includes structural and architectural works, finishing, and mechanical, electrical and plumbing systems.

    The company will also deliver infrastructure works, including utility connections to external networks, testing and commissioning.

    The development comprises two residential towers offering 187 residential units.

    The works will be carried out under the consultancy supervision of local engineering firm Mirage Leisure & Development.

    The latest contract award follows Eagle Hills awarding the local firm Arabian Construction Company (ACC) an estimated AED2.5bn ($680m) construction contract to build about 500 villas at the Ramhan Island development, as reported by MEED previously.

    Located off the coast of Abu Dhabi, the Ramhan Island development spans an area of over 4 million square metres.

    The overall development includes the construction of 1,800 villas, 900 residences, a hotel and retail facilities.

    Mohamed Alabbar launched the Ramhan Island development in May 2024.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19355437/main.jpg
    Yasir Iqbal
  • Dubai sets deadline for Jebel Ali waste-to-energy PPP

    4 September 2026

     

    Register for MEED’s 14-day trial access 

    Dubai Municipality has set a 27 September deadline for developers to submit expressions of interest (EOIs) for its planned Jebel Ali waste-to-energy (WTE) public-private partnership (PPP), according to a source.

    The greenfield facility is planned to treat up to 6,000 tonnes of municipal solid waste a day.

    The municipality is seeking international and local developers to develop, finance and operate the facility. It is planning to prequalify developers later this year before issuing a request for proposals (RFP) in the first quarter of next year, a source said.

    The Jebel Ali facility is intended to support Dubai’s waste-management strategy and its target of reducing reliance on landfill.

    Dubai Municipality is being advised by a team led by Abu Dhabi’s Tribe Infrastructure Group, with UK-headquartered Ashurst and Germany’s Fichtner also involved.

    It was confirmed to MEED that the project is separate from the planned second phase of the Warsan WTE facility, for which Dubai Municipality issued a consultancy tender in February.

    That facility will be located in Warsan 2, next to the Al-Aweer sewage treatment plant. The expansion is expected to increase waste-conversion capacity at the existing Warsan site with an estimated budget of $500m. The consultancy contract has a duration of six years.

    The original Warsan WTE plant, Dubai’s first major WTE public-private partnership (PPP) project, reached full commercial operations in 2024.

    Located in the Warsan area, the AED4bn ($1.1bn) facility treats 1.9 million tonnes of municipal solid waste annually, generating up to 220MW of thermal energy that is fed into the local grid.

    In February 2023, state utility Dubai Electricity & Water Authority (Dewa) and Dubai Waste Management Company signed the power-purchase agreement (PPA) for the project.

    Dubai Waste Management Company, the special-purpose vehicle implementing the scheme, reached financial close in June 2021 for the project.

    The Warsan project was developed under a 35-year PPP concession by a consortium comprising Dubai Holding, Dubai Aluminium, Tech Group and Itochu Corporation. 

    The main contractor was a joint venture of Belgium’s Besix Group and Hitachi Zosen Inova of Switzerland.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19354502/main.jpg
    Mark Dowdall
  • Egypt to invest $4.5bn in refinery upgrades

    4 September 2026

    Egypt is planning to invest $4.5bn in refinery upgrades, according to the country’s Minister of Petroleum and Mineral Resources, Karim Badawi.

    Egyptian refineries are operating at 80% of capacity compared with 66% two years ago, according to Badawi, who wants further increases in utilisation of existing facilities.

    “We aim to invest around $4.5bn to develop existing refineries and build new units to reduce imports and achieve self-sufficiency in refined products,” he said in a statement.

    In May, Egypt said that it had increased its fuel import budget by almost 40% for the 2026-27 fiscal year amid higher global prices driven by the Iran war, which started when the US and Israel launched an attack on Iran on 28 February.

    Brent crude prices are up about a third since the conflict started, trading at more than $90 a barrel for most of this month so far.

    Badawi said a decline in Egypt’s oil and gas production between 2021 and 2024 occurred because foreign companies were reluctant to invest in the country’s energy sector due to unpaid government debts.

    He said: “We have settled all the debt, which reached $6.1bn in June 2024. As a result, hydrocarbon exploration and production activity grew by nearly 20% this year.

    “We are now moving in the right direction to increase oil and gas output gradually.”

    Despite the ongoing push to develop projects in the country’s oil and gas sector, several key projects have seen significant delays in recent years.

    These include a $2bn hydrocracking complex package that forms part of the wider Assiut oil refinery upgrade project.

    Earlier this month, MEED revealed that mechanical completion of the hydrocracking package is now unlikely to be reached until early next year due to complications in the final stages of construction.

    The hydrocracking complex package has experienced extensive delays over several years.

    In April this year, Badawi called for work to accelerate on the Assiut oil refinery upgrade project, saying it is important for reducing the country’s spending on imported refined products.

    At the time, the oil ministry said the project was 88% complete, with trial operations planned by the end of the year.

    Assiut Oil Refining Company (ASORC), a subsidiary of state-owned Egyptian General Petroleum Corporation, is the project operator.

    France’s Technip Energies is the main contractor, performing engineering, procurement and construction work on the Assiut hydrocracking complex under a $2bn contract awarded by ASORC in February 2020.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19353521/main.jpg
    Wil Crisp
  • North Field West platform bidders get extra time

    4 September 2026

     

    QatarEnergy has granted contractors additional time to prepare bids for a key tender for the engineering, procurement, construction and installation (EPCI) of large platforms for the giant North Field gas field in Qatari waters.

    The tender, issued earlier this year, forms part of the wider North Field West (NFW) project, the third and last phase of the state enterprise’s North Field liquefied natural gas (LNG) expansion programme.

    The core scope comprises the EPCI of four production deck modules (PDMs) and associated structures. The new PDMs will increase gas production from North Field reservoirs and provide additional gas feedstock for the NFW LNG development.

    QatarEnergy has set 15 September as the deadline for technical bid submissions, while commercial bids are due on 10 November, according to sources.

    The previous deadlines for submission of technical and commercial bids were 30 August and 25 October, respectively, MEED previously reported.

    The following contractors, among others, are understood to be bidding:

    • China Offshore Oil Engineering Company (China)
    • Larsen & Toubro Energy Hydrocarbon (India)
    • McDermott (US)
    • Saipem (Italy)

    Before issuing the PDM tender, QatarEnergy awarded McDermott a contract for the EPCI of four offshore jackets that will also support gas feedstock supply for the NFW LNG project. The contract is estimated to be worth about $200m, MEED reported in January.

    North Field LNG expansion

    QatarEnergy is advancing the three phases of its estimated $40bn North Field LNG expansion project. EPC works on all three giant projects are progressing.

    QatarEnergy is understood to have committed nearly $30bn to the first two phases – North Field East (NFE) and North Field South (NFS) – which will lift Qatar’s LNG production capacity from 77.5 million tonnes a year (t/y) to 126 million t/y by 2028.

    QatarEnergy awarded the main EPC contracts for NFE in 2021. The project was intended to raise LNG output to 110 million t/y by 2025. The $13bn EPC package – covering the EPCI of four LNG trains, each with a capacity of 8 million t/y – was awarded in February 2021 to a consortium of Japan’s Chiyoda and France’s Technip Energies.

    In May 2023, QatarEnergy awarded the $10bn main EPC contract for NFS to a consortium of Technip Energies and Consolidated Contractors Company (CCC). The contract includes two LNG trains, each with a capacity of 7.8 million t/y.

    Once fully operational, the first two phases are expected to add 48 million t/y of LNG supply to the global market.

    QatarEnergy took the final investment decision on NFW this year, awarding an EPC contract estimated at $8bn to a joint venture comprising Technip Energies, CCC and Gulf Asia Contracting (GAC) in February.

    Chiyoda carried out the front-end engineering and design (feed) work for the NFW LNG project.

    The NFW scope covers the EPC of two LNG trains with a combined capacity of 16 million t/y, as well as associated facilities for gas treatment, natural gas liquids recovery and helium extraction.

    In addition to LNG, NFW is expected to produce about 175,000 barrels of oil equivalent a day of condensate, ethane and LPG.

    With all three phases now under EPC execution – and NFE scheduled for commissioning later this year – QatarEnergy is positioning itself to remain one of the world’s largest LNG suppliers over the long term.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19352006/main.jpg
    Indrajit Sen
  • Contractors prepare Dubai Metro Gold Line prequalifications

    4 September 2026

     

    Register for MEED’s 14-day trial access 

    Contractors are preparing to submit their prequalification statements on 7 September for a contract to build the new Gold Line as part of the Dubai Metro network’s expansion.

    Dubai’s Roads & Transport Authority (RTA) issued the request for qualification notice for the project in June, with an initial submission deadline of 17 August, as MEED exclusively reported.

    This followed the RTA’s invitation to contractors to express interest in building the new Gold Line in May.

    Dubai officially announced the launch of the new 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 will cost about AED34bn ($9.2bn).

    The Gold Line will increase the Dubai Metro network’s total length by 35%.

    The project is scheduled for completion in September 2032.

    The Gold Line will be a fully underground network covering more than 42 kilometres, with 18 stations.

    It will pass through 15 areas in Dubai, benefiting 1.5 million residents.

    The project is expected to provide connectivity to over 55 under-construction real estate development projects.

    The Gold Line will start at Al-Ghubaiba in Bur Dubai and end at Jumeirah Golf Estates.

    It will connect to Dubai Metro’s existing Red and Green lines and integrate with the Etihad Rail passenger line.

    The contractor will be responsible for the design and build of all civil works, electromechanical equipment, rolling stock and rail systems.

    The selected contractor will also be required to assist in the 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 covers preliminary design, stage three covers the preparation of tender documents, stage four encompasses construction supervision, and stage five covers the defects and liability period.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19350865/main.png
    Yasir Iqbal