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Saudi Aramco pre-qualified bidders on Abqaiq-Hawiyah-Ras Tanura IPPs

Saudi Aramco to send Power Plants Call for Tenders 

Saudi Aramco is planning to build three Independent Power Projects (IPPs) to build three greenfield gas-fired power plants in the Eastern Province of Saudi Arabia.

These power plants should be installed in Abqaiq, Hawiyah and Ras Tanura with a total:

 – Electrical capacity of 770MW/h

 – Steam capacity of 2.95 million pounds/h

Abqaiq should have a capacity of 320 MW and 1.2 million pounds steam per hour

Hawiyah is planned to be 130 MW and 550,000 pounds steam per hour

Ras Tanura is designed to deliver 320 MW and 1,000 pounds steam per hour

Each power plant will convert fuel gas and feed water provided by Saudi Aramco into electricity and steam for sale under an energy conversion agreement.

In November 2011, Saudi Aramco had issued a request for qualification (RFQ) to potential developers interested in building the power plants.

The bidders must respond to the RFQ by March 11, 2012.

Saudi Aramco qualified 8 groups out of 16 applicants

At that date, 16 companies submitted an application out of which Saudi Aramco pre-qualified the 8 following companies or consortium:

 – Acwa Power from Saudi Arabia

 – IP-GDF Suez from UK and France

 – Kepco from South Korea

 – Marubeni from Japan

 – Sumitomo from Japan

 – Saudi Oger/Powertek Berhad from Saudi Arabia and Malaysia

 – JGC Corporation from Japan

 – Sembcorp from Singapore

Abqaiq, Hawiyah & Ras Tanura Electricity & Steam Plants Project to be awarded as BOOT contract

Saudi Aramco will send the Requests for Proposals (RFPs) for the three IPPs on September 2012 under the form of build-own-operate-and-transfer (BOOT) contract.

The winner of the bid will build the three power plants.

This BOOT contract should be awarded on December 2012 with a dedicated construction period for each facility:

 – Abqaiq in January 2016

 – Hawiyah in November 2015

 – Ras Tanura in March 2016

Following these construction periods, the BOOT contract is planned for a transfer from the developer to Saudi Aramco after 20 years.

In this BOOT scheme Saudi Aramco may take equity and up to 50% of the voting rights, leaving the remaining part to be shared between the selected developer consortium members.

Anyway, each one of the winning consortium members will be required to hold at least 20% of the remaining voting rights.

While in operations, the BOOT contract will be compensated by Saudi Aramco through an energy conversion agreement.

In this energy conversion Agreement Saudi Aramco will provide fuel gas and water feedstock to the IPPS on the supply side and will buy the electricity and steam on the sale side.

Building these three IPPs in parallel represents a challenging project which may be critical for the supply of Saudi Aramco oil and gas and petrochemicals facilities in Abqaiq, Hawiyah & Ras Tanura, but not strategic since related to utilities.

In this context, contracting the Abqaiq, Hawiyah & Ras Tanura Electricity & Steam Plants project under a BOOT contract provides Saudi Aramco the right balance to monitor closely the construction and operations phases while focusing on the core business of its Market Leadership.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

1 Comment to “Saudi Aramco pre-qualified bidders on Abqaiq-Hawiyah-Ras Tanura IPPs”

  1. Dear Sir,

    we are so interested to work with you and we have very very qualified field workers,so if you have any kind of manpower requirement,give us opportunity to serve you

    sincerely
    Rakib Ali (JMC)
    Cell 0537142466

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