Two set to bid for Aramco sulphur recovery units
28 April 2023

Two teams are understood to be preparing to submit proposals on 30 April for the contract to modify sulphur recovery units (SRUs) at Saudi Aramco’s key gas processing plants.
Aramco issued the main tender for the large downstream tail-gas treatment (TGT) facility in May last year, as MEED reported.
According to industry sources, the teams expected to bid for the contract are:
- Vision Invest (Saudi Arabia) / Larsen & Toubro (India)
- Lamar Holding (Saudi Arabia) / Hyundai Engineering (South Korea) / Korea Overseas Infrastructure & Urban Development Corporation (South Korea) / Enerflex (Canada)
Aramco expects third-party investments of up to $2bn in the desulphurisation programme, which entails building a large downstream tail-gas treatment (TGT) facility to collect and process tail gas discharged from SRUs at identified gas plants.
The facility is to be developed either on a build, own and operate (BOO) or build-own-operate-transfer (BOOT) basis. This will make it one of Aramco’s initial public-private partnership (PPP) exercises in its main oil and gas business, if not the first.
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.
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Power generation and water desalination are also key sources of demand, while new industrial zones – as well as data centres supporting the expansion of artificial intelligence (AI) use in the country – add further baseload requirements.
Adnoc Gas, Adnoc Group’s gas processing subsidiary, is leading the UAE’s push to expand gas processing capacity and is executing a major capital expenditure (capex) programme worth $28bn over 2026-30.
As part of that capex plan, Adnoc Gas achieved final investment decision (FID) on the second and third phases of its Rich Gas Development (RGD) programme earlier this year.
Adnoc Gas awarded $8.2bn of engineering, procurement and construction (EPC) contracts for the second and third phases of the RGD programme. These relate to the construction of a new gas processing train at the Habshan complex and a natural gas liquids fractionation train at the Ruwais gas processing facility, respectively.
Adnoc Gas officially announced the awards, saying it selected China-based Wison Engineering for RGD phase 2 under a $3.9bn contract, while Italy’s Tecnimont was awarded the $4.3bn phase 3 contract.
Adnoc Gas has also reiterated its $5bn capex for the first phase of the RGD scheme, which is under construction. The company awarded $5bn of engineering, procurement and construction management contracts in three tranches for phase 1 of the RGD programme in June last year, marking the company’s largest-ever capital investment.
Across all three phases, Adnoc Gas has committed a total of $13.2bn to the RGD programme.
Bab Gas Cap development
Looking ahead, Adnoc Gas is advancing towards FID on the estimated $8bn Bab gas cap development. The project will process up to 1.85 billion cubic feet a day (cf/d) of raw feed gas once Adnoc Group begins extracting reserves from four underdeveloped onshore reservoirs at the Bab field: Thammama A, B and H (projected to yield a combined 1.45 billion cf/d) and Thammama F (projected at 396 million cf/d).
Because existing trains at the Habshan complex cannot accommodate these supplementary volumes, the project entails building a processing plant approximately 170 kilometres from Abu Dhabi city, alongside pipeline networks and ancillary units.
Adnoc Gas has split the EPC scope into four packages, with technical bids due on 16 November:
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Four contractor consortiums prequalified to bid for the main contracts:
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Gas pipeline investments
Adnoc Group continues to invest in projects to enhance its gas transmission networks across the UAE, following its $3.5bn-plus capex on the Estidama programme earlier this decade to expand its sales-gas network in the country.
Adnoc Gas recently awarded the main contract for a project to build a new pipeline that will supply gas from the Habshan scraper launcher station at its Habshan gas compression complex in Abu Dhabi to the Al-Nouf customer receiving station, for delivery to Emirates Water & Electricity Company (Ewec).
The proposed 56-inch, 127km pipeline will help the UAE’s state utility, Ewec, meet additional gas demand to power the second phase of an AI data centre in Abu Dhabi, as well as support the relocation of some of its key assets in the Mirfa area of the emirate.
Adnoc Gas awarded the EPC contract for the project to India-based Kalpataru Projects International.
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The planned network will source crude from Zirku Island and Das Island, where Adnoc gathers and treats oil produced at Abu Dhabi’s offshore fields, among other processing hubs, and transport it about 300km inland to the Jebel Dhanna terminal.
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KBR wins Aramco offshore engineering services contract15 October 2026
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Saudi Aramco has awarded US-headquartered KBR a contract to provide engineering services to support facility upgrades across the Marjan offshore field in Gulf waters.
Under the contract, awarded under Aramco’s existing general engineering services-plus (GES+) agreement with KBR, the US firm will provide engineering and project execution services to support key offshore processing, gas compression and power infrastructure facilities within the Marjan field.
The project is expected to help maintain the Marjan field’s production capacity in line with recent field developments, KBR said in a statement.
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The Marjan offshore oil field, on Saudi Arabia’s eastern coast, was discovered in 1967 and began production in 1973.
In 2019, Aramco committed an estimated $15bn in capital expenditure for a major infrastructure upgrade at the field under the Marjan increment programme. The project aims to increase the field’s oil production capacity by 300,000 barrels a day (b/d) of Arabian Medium crude oil to 800,000 b/d, process 2.5 billion cubic feet a day of gas, and produce an additional 360,000 b/d of ethane and natural gas liquids.
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MEED’s October 2026 report on Saudi Arabia includes:
> COMMENT: Saudi projects hold steady
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> BANKING: Saudi lenders readjust to lower lending and deposit climate
> UPSTREAM: Aramco upstream spending gathers pace
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> POWER: Saudi Arabia’s power award activity slows
> WATER: Saudi water sector hits sharp slowdown
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Qatar’s Public Works Authority (Ashghal) has awarded three road development contracts worth more than QR1.1bn ($317m) to local contractors for works across Qatar.
The contracts were formally awarded on 1 October, and each has a three-year construction period.
Qatar Building Engineering Company secured a QR479m ($132m) contract for roads and infrastructure works in the Wadi Al-Banat North Zone 70 area.
The contract covers constructing and upgrading local roads across several streets in the area. The scope also includes surface-water drainage, foul sewerage and treated sewage effluent networks, as well as connections to existing potable water, power and telecommunications infrastructure.
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Kuwait studies two oil export pipelines to bypass Hormuz15 October 2026
State-owned Kuwait Petroleum Corporation is considering developing two oil export pipelines that would bypass the Strait of Hormuz, according to a senior Kuwaiti oil official.
The pipelines would transport crude oil through Saudi Arabia and the UAE, aiming to diversify Kuwait’s export routes.
Mohammed Al-Abduljalil, the deputy chief executive for planning and innovation at the KPC subsidiary Kuwait Oil Company, told Asharq Bloomberg that KPC had agreed with its partners in Saudi Arabia and the UAE to conduct feasibility studies for two separate projects.
The first project extends from Kuwait’s Ahmadi region through Saudi Arabia to the Red Sea coast. The second extends from the Ahmadi region to Fujairah in the UAE.
The pipelines would build on existing infrastructure and, if the plans are approved, are expected to take around four or five years to complete, Al-Abduljalil said.
He said the first project, currently under study, would use the route of the existing East-West pipeline, which connects the kingdom’s eastern oil-producing regions to its western coast.
The second project would follow the UAE’s Habshan-Fujairah pipeline route, enabling oil exports from the Sea of Oman coast, outside the Strait of Hormuz.
Al-Abduljalil emphasised that both projects remain in a very early stage, noting that the agreement to conduct feasibility studies does not constitute a final investment decision to proceed with implementation.
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Gulf Spic submits lowest bid for Kuwait booster stations15 October 2026

Kuwait-based Gulf Spic General Trading & Contracting Company has submitted the lowest bid for a contract to upgrade gas booster stations in the country.
Gulf Spic’s bid was worth KD41.2m ($132m) and was one of four bids submitted for the contract.
The project scope focuses on upgrading gas booster stations 140 and 150 (BS-140 and BS-150).
The full list of bidders was:
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