Saudi Aramco chooses engineering contractors for Jazan refinery project

Saudi Aramco on Monday completed the contractor selection process for the engineering, procurement and construction (EPC) phases of the Jazan refinery and terminal project, located in the southwest part of Saudi Arabia.

After completion of front-end engineering design (FEED) work in April 2012, competitive bidding for the EPC contracts took place, the company said.

Companies selected include Petrofac Saudi Arabia and Hyundai Arabia; Hanwha Engineering and Construction and SK Engineering & Construction, each from Korea; Tecnicas Reunidas from Spain; and JGC Corp. and Hitachi Plant Technologies, each from Japan.

A signing ceremony for the major packages and awards is scheduled to be held in Jazan next month at the project site, according to Aramco officials.

Scheduled for completion in late 2016, Saudi Aramco’s Jazan mega-project is expected to play a significant role in the supply of feedstock and fuels to support industry growth, the company said.

The Jazan project is expected to create numerous economic benefits, the company said, including business opportunities for local enterprises and new job opportunities.

The project includes a 400,000 bpd refinery with associated terminal facilities on the Red Sea near Jazan.

Scheduled for completion in late 2016, the refinery will process Arabian heavy and Arabian medium crude oils, and produce gasoline, ultra-low sulfur diesel, benzene and paraxylene.

The refinery will be synergized with a world-scale integrated gasification combined cycle plant that is currently at the FEED stage.

The marine terminal will have the capacity to handle very large crude carriers (VLCCs) for the supply of crude oil to the refinery, and berths to support refined product exports from the refinery.

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