Bid & Tender

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Project Summary
Project Name: Saudi Aramco’s Jafurah Gas Plant Project – Overview
Facility Type: Gas Plant
Client: Saudi Aramco
Budget (US $): 10,000,000,000
Project Initiation: Not Given
Project Completion:: Dec 08, 2025
Status: EPC Awarded,
Location: Jafurah
Project Current Status

Saudi Aramco has signed a contract with Hyundai E&C and Hyundai Engineering of South Korea for the Phase 2 expansion project of the Jafurah Gas Field in Saudi Arabia. The contract value is 1.5345 trillion won ($1.18 billion) for each company. The Phase 2 project of the Jafurah Gas Treatment Facility involves constructing additional facilities to process gas produced from the Jafurah Gas Field, including sulfur recovery units. The project duration is set for 41 months from the commencement date. This project will be built adjacent to the site of the Phase 1 Jafurah Gas Treatment Facility, awarded earlier to Hyundai Engineering and Hyundai E&C in 2021. (January 2024)

Project History
  • Saudi Aramco is planning to build a gas plant in Jafurah to produce various products. The new facility is part of Saudi Aramco’s plan to produce 3 billion cubic feet of unconventional gas daily in the next decade. (March 2019)
  • Saudi Aramco has received bids for the engineering, procurement and construction (EPC) packages 2 and 3 of a project to build a greenfield plant to process unconventional gas from the Jafurah onshore field. The lowest bidder for EPC package 2, which covers the main gas processing plant, is Samsung Engineering of South Korea. The lowest bidder for EPC package 3, which covers installation of utilities and interconnecting facilities, is the China Petroleum Engineering and Construction Corporation (CPECC). The other bidders for package three were LTHE of India and CAT Group of Lebanon. (February 2020)
  • Saudi Aramco tenders Jafurah well tie-in works. (February 2020)
  • South Korea’s Samsung Engineering emerged as frontrunner for package 2 of the megaproject. Package 2 is the biggest EPC package of the Jafurah gas plant project, with an estimated value of $1.5bn. The package covers EPC works for the installation of the main gas processing plant and forms the core component of the project. (March 2020)
  • Aramco has extended the bids submission deadline to May, 2020 for the $1bn EPC package 1, which covers installation of gas compression facilities. (April 2020)
  • Bids for packages 2, 3 and 5 have already been submitted. Aramco had asked contractors that have submitted bids for the three packages to extend the validity of their proposals until the end of the year, owing to the business impact of Covid- 19 and low oil prices on the oil and gas industry. (April 2020)
  • The bids submission deadline for the EPC package 1 has been extended to 30 June, 2020. (May 2020)
  • Bid evaluation is under way for package 5, which is estimated to be a $500m contract for the installation of a 349 kilometre-long pipeline that will export gas produced by the Jafurah plant. (June 2020)
  • The bids submission deadline has been extended for the engineering, procurement and construction (EPC) package 1 and 4, estimated to be worth $1bn and $50mn, respectively, of a greenfield plant project to process unconventional gas from the Jafurah onshore field. Bids are now due to be submitted by 30 August, 2020. (August 2020)
  • Bids submission deadline has been extended to 31 December, 2020 for the construction contract of the planned cogeneration independent steam and power plant (ISPP) at the Jafurah unconventional gas development in the eastern part of the Kingdom. (October 2020)
  • SEC has received bids for the construction of 230kV Overhead Transmission line (OHTL) for Jafurah Gas Plant project. The consortium of Kalpataru Power Transmission Ltd. of India and Bin Omairah Contracting Co. Ltd. of Saudi Arabia has submitted the lowest bid price of $31.2 million (SAR 116.8 million). The lump sum turnkey contract scope will involve the design, engineering, materials procurement, quality management, factory inspection/testing, transport and delivery to site, installation, construction, site inspection, testing and commissioning, all associated work and services until final handing over of new OHTL work in a satisfactorily working and operating condition. Once the project completed, Jafurah Gas Plant’s substation will be connected to the national grid network. (November 2020)
  • Aramco has cancelled the tendering process for contract to develop the planned Jafurah cogeneration ISPP project. No reason was cited for cancelling the tender. (December 2020)
  • Aramco has cancelled Packages 1, 2, & 3. (December 2020)
  • $31.2 million (SAR 116.8 million) contract for the construction of 230kV Overhead Transmission line (OHTL) for Aramco's Jafurah Gas Plant project has been awarded to the consortium of Kalpataru Power Transmission Ltd. of India and Bin Omairah Contracting Co. Ltd. of Saudi Arabia. The lump sum turnkey contract scope will involve the design, engineering, materials procurement, quality management, factory inspection/testing, transport and delivery to site, installation, construction, site inspection, testing and commissioning, all associated work and services until final handing over of new OHTL work in a satisfactorily working and operating condition. (March 2021)
  • After receiving regulatory approval to develop the Jafurah unconventional gas field in 2020, development plans are under way to deliver the first increment of Jafurah gas by 2024. Client is now evaluating several options to process Jafurah hydrocarbons to optimise costs. (March 2021)
  • Saudi Aramco has revived the EPC packages 1-5 of a greenfield plant project to process unconventional gas from the Jafurah onshore field. The Package 1 scope entails installation of gas processing plant. Contractors are expected to resubmit bids for the same. For the packages 2,3,4 and 5, contractors are seeking for bid validity extension till the end of September, 2021. (June 2021)
  • The Site Preparation Package has been revived. Last date to submit commercial bids for the site works is 11 July, 2021. (July 2021)
  • Saudi Aramco has appointed contractors for the EPC packages 1 & 2 – Gas Compressor Plant and Gas Processing Plant. Larsen & Toubro (L&T) of India has been appointed for the package 1. Other bidders who submitted the contract bids include: Hyundai E&C, JGC Corporation, and Saipem. Scope includes construction of 3 gas compression plants with the production capacity of 600mmscfd (raw gas) and 150mbd (condensate gas), associated utilities and infrastructure, three 230kV gas-insulated substation (GIS), operation support building at North & South Jafurah field, and installation of RO systems. Samsung Engineering has been appointed for the package 2. Other bidders who submitted the contract bids include: L&T, Hyundai E&C, Saipem, and Technip. Scope includes construction of 2 gas separation trains with the total capacity of 1100 mmscfd, booster compressors units, acid gas removal units (AGRU), hydrocarbon condensate stabilization unit, gas dehydration unit with the processing capacity of 523 mmscfd (sweet gas). (December 2021)
  • The Hyundai consortium has been awarded a contract worth $1.7 billion for Package 3 – Sulphur Utilities and Interconnecting Facility. Hyundai Engineering and Hyundai E&C hold 55% and 45% stake in the JV, respectively. The scope includes the construction of inlet and export facilities, sulphur recovery unit (SRU), and installation of interconnecting pipe racks. (December 2021)
  • L&T has been awarded a contract for the Package 4 – Gas Export Pipeline. The contract scope includes laying of 24-inch and 14.75km C2+NGL Export Pipeline, 56-inch and 99.6km Sales Gas Export Pipeline, Condensate Export Pipeline, and installation of associated facilities. (December 2021)
  • Saipem of Italy has been awarded contract worth $750mn for Package 5 – Upstream Pipelines and Wells Tie-In Package. The EPC contract includes the engineering, supply of materials, construction, and commissioning of approximately 835 km of pipelines for the transportation of gas, condensate and production water. Saipem will also build a system to transport water associated with the separation of the treated gas. (December 2021)
  • Al Yamama Company has been awarded Package 6 – Site preparation and Temporary Construction Facility. (December 2021)
  • Detailed engineering works is started on the package 3 - Sulphur Utilities and Interconnecting Facility. (February 2022)
  • SEC has received bids for the construction of Jafurah 380/230kV substation. Twelve bidders have submitted the proposals. National Contracting Company (NCC) of Saudi Arabia has submitted the lowest bid price of SAR 321.5 million ($85.7 million). Eleven bidders have submitted the proposals. NESMA Infrastructure & Technology Co. Ltd, a subsidiary of NESMA Holding has submitted the lowest bid price of SAR 326 million ($86.9 million). TEI reported in February, 2022 that SEC had received bids. However, due to change in requirements, SEC retendered the project. (May 2022)
  • Saudi Aramco has selected Kepco of South Korea to develop its planned ISPP at the Jafurah unconventional gas development in the eastern part of the Kingdom. Doosan is understood to carry out the implementation of the project. (July 2022)
  • Kepco has awarded a 540 billion won ($383 million) contract to Doosan Enerbility Company of South Korea for the construction of a combined heat and power plant in Jafurah, Saudi Arabia. Doosan scope of works includes complete EPC of the project including the entire process from design to equipment supply, installation, and test operation. (October 2022)
  • SEC has awarded a contract worth SAR 326 million ($86.9 million) to NESMA Infrastructure & Technology Co. Ltd, a subsidiary of NESMA Holding for the construction of Jafurah 380/230kV substation in eastern region of Saudi Arabia. The contract scope includes the construction of new indoor 380/230kV Gas Insulated Substation (GIS) with major equipment of 380kV GIS, 230kV GIS, 752MVA Power Transformers, Reactors, Protection & Control System, Substation Automation System, Telecommunication System, Security System, Cyber Security, Civil works and Electro-mechanical works. The contractor shall perform on lump sum turnkey basis, the design, engineering, materials procurement, quality management, factory inspection/testing, transport and delivery to site, installation, construction, site inspection, testing and commissioning, all associated work and services until final handing over of substation work in a satisfactorily working and operating condition. (October 2022)
  • Aramco is in talks with Sinopec Corp and TotalEnergies for a gas deal of about $10 billion. Sinopec and TotalEnergies are in separate discussions to invest in the Jafurah development in Saudi Arabia. The plans may include the construction of facilities to export the fuel as liquefied natural gas. (May 2023)
  • Saudi Aramco has awarded a contract worth nearly $4 billion (Rs 332.6 billion) to Larsen & Toubro (L&T) for the Jafurah unconventional gas development project. Under the contract, L&T will be developing a gas processing plant and main process units, and will construct gas compression units for the $110-billion mega project in the eastern province of the kingdom. The first contract to set up a gas processing plant and its main process units is estimated to be worth $2.9 billion (Rs 240 billion), while the second contract to construct gas compression units is worth $1 billion (Rs 83.2 billion). (September 2023)
  • Saudi Aramco has awarded a contract worth nearly $3.2 billion to Tecnicas Reunidas of Spain for the natural gas liquids (NGL) package 1 & 2 of Jafurah unconventional gas development project. Under the contract, Tecnicas Reunidas will carry out the engineering, procurement, construction, pre-commissioning and commissioning of two NGL fractionation trains, with a capacity of 255,000 barrels a day each, and utilities, storage and export facilities for the estimated $10bn second expansion phase of the mega project. The package 1 contract for NGL fractionation trains is estimated to be worth $1 billion, while the package 2 contract is worth $2.2 billion. (October 2023)
Project Contract Awards - Feed
Contractor Prequalified Contractor Bids Submitted Contractor Awarded | Contract Value
Project Contract Awards - PMC
Contractor Prequalified Contractor Bids Submitted Contractor Awarded | Contract Value
  • No Tendering Process
Project Contract Awards - EPC
Contractor Prequalified Contractor Bids Submitted Contractor Awarded | Contract Value
  • Hyundai Engineering & Construction Co Ltd.
  • Technip
  • Tecnicas Reunidas
  • JGC Corporation of Japan
  • Larsen & Toubro
  • Saipem
  • Samsung Engineering
  • Hyundai Engineering & Construction Co Ltd.
  • JGC Corporation of Japan
  • Larsen & Toubro
  • Saipem
  • Samsung Engineering
  • Technip
  • Tecnicas Reunidas
  • Hyundai Engineering & Construction Co Ltd.($1.7 billion (Package 3), $2.3 billion (Gas Treatment Facility))
  • Larsen & Toubro(Package 1, 2 and 4)
  • Saipem($750 million (Package 5))
  • Samsung Engineering(Package 2 ($1.2 billion))
  • Tecnicas Reunidas(NGL Package 1 ($1 billion), NGL Package 2 ($2.2 billion))
Related Projects
Saudi Aramco’s Jafurah Gas Field Development
Saudi Aramco’s Jafurah Cogeneration ISPP Project
Project Schedule

February 2020: Bid submission for EPC Package 2 & 3

March 2020: Contract awarded for EPC package 2

December 2020: EPC Packages Cancelled

June 2021: EPC Packages Revived

December 2021: Contract awarded for revised EPC packages 1 & 2

October 2022: EPC Contract Awarded for Cogeneration Project

September 2023: EPC Contract Awarded for Gas Processing Plant 

January 2024: EPC Contract Awarded for Gas Treatment Facility 

Q4, 2025: Expected Commissioning & start-up 

Project Scope

The project scope involves building a greenfield plant to process unconventional gas from the Jafurah onshore field.

 

Al-Ahsa region has big volumes of shale gas, which are highly promising quantities and economically feasible as they contain a high rate of liquids. The Jafurah field lies in the Al-Ahsa region.

 

The plant is expected to produce up to 2.5 billion cubic feet per day of onshore unconventional gas, when completed.

 

The EPC packages include:

1. Package 1 - Gas Compressor ($1bn maybe)

Scope includes construction of 3 gas compression plants with the production capacity of 600mmscfd (raw gas) and 150mbd (condensate gas), associated utilities and infrastructure, three 230kV gas-insulated substation (GIS), operation support building at North & South Jafurah field, and installation of RO systems.

 

2. Package 2 – Gas Processing Plant

Scope includes construction of 2 gas separation trains with the capacity of 1100 mmscfd, booster compressors units, acid gas removal units (AGRU), hydrocarbon condensate stabilization unit, gas dehydration unit with the processing capacity of 523 mmscfd (sweet gas)

 

3. Package 3 - Sulphur Utilities and Interconnecting Facility

Scope includes construction of inlet and export facilities, sulphur recovery unit (SRU), and installation of interconnecting pipe racks.

 

4. Package 4 - Gas Export Pipeline

Scope includes laying of 24-inch and 14.75km C2+NGL Export Pipeline, 56-inch and 99.6km Sales Gas Export Pipeline, Condensate Export Pipeline, and installation of associated facilities.

 

5. Package 5 - Upstream Pipelines and Wells Tie-In Package

Scope includes construction of 8 wellpads/32 wells, laying of 8-inch, 60km flowlines, laying of trunklines from remote headers to gas compression plant, and transmission lines from gas compression plant to Jafurah gas plant.

 

6. Package 6 - Site preparation and Temporary Construction Facility

Project Structure:
The project is owned, operated and managed by the Saudi Aramco. The local SMBC has been appointed as financial adviser for the scheme.
MajedAl Mugla
Address: Saeed Tower, Dammam Khobar Highway, P.O. Box 151, Al Khobar 31952, Saudi Arabia, Al Sharqiyah
Designation: Vice President, Project Management
Department: Saudi Aramco
Phone: +966 3-872-0115
MohammadAl Onaizi
Designation: Communications Manager
Department: Project Control Department, Saudi Aramco
Phone: +966 3 862 1142
Fax: +966 3 873 8190