Bid & Tender

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Project Summary
Project Name: Saudi Aramco’s Shale Gas Project – Overview
Facility Type: Gas Field Development
Client: Saudi Aramco
Budget (US $): Unknown
Project Initiation: Not Given
Project Completion:: Not Given
Status: FEED Awarded,EPC Awarded,
Location: The Empty Quarter, South Ghawar and Jalamid
Project Current Status

Aramco is in the process of building a System B, which will be at least four times bigger than System A. It also has plans to build a System C but has yet to issue tenders for its construction. (September 2017)

Project History
  • Aramco has invited companies to bid for work on its unconventional gas facilities in the north of the country, signalling it remains committed to developing shale gas deposits. .December 2014.
  • Aramco plans to put hold on project due to very high production cost of shale gas. .May 2014.
  • The feasibility study has been completed by Halliburton and Schlumberger of US for potential of shale gas production in the northern regions of Saudi. .July 2013.
  • Aramco to invite companies to express interest in a Feed contract for the shale gas production project in three different locations. The locations are: The Empty Quarter, South Ghawar and Jafurah in the northern region. .October 2013.
  • Bids have been submitted for the front-end engineering and design .feed. work for gas treatment facilities and all accompanying offsites and utilities for the development of shale gas project. The contract award is expected to be made by March end. .January 2014.
  • Aramco plans to put hold on project due to very high production cost of shale gas. (May 2014)
  • Aramco has invited companies to bid for work on its unconventional gas facilities in the north of the country, signalling it remains committed to developing shale gas deposits. (December 2014)
  • Saudi Aramco has extended the deadline to March 15 for companies to bid for work on its unconventional gas facilities (System A Shale Gas Project) in the north of the country. (February 2015)
  • Several companies have prequalified for another unconventional gas project (System B Shale Gas Project) involving pipelines. (February 2015)
  • Saudi Aramco president and chief executive Khalid Al-Falih has predicted that KSA will be the “second frontier” for shale gas after the US. He said one of the key sites in the north of the country expected to come into production by either 2016 or 2017. (April 2015)
  • JGC Corporation of Japan has won the award for CPF), Wellheads and Pipelines systems for System A Shale Gas Project. The award value is estimated to be as much as $200 mn. (August 2015)
  • EPC bids have been submitted for phase II shale gas project (System B). Bidders are: JGC Corporation of Japan, Larsen & Toubro of India, and SNC Lavalin of Canada. The contract is expected to be awarded by year-end. (October 2015)
  • EPC contract worth $800 million for System B project has been awarded to SNC Lavalin of Canada. The contract scope will involve infrastructure development and processing facilities for a gas field. (March 2016)
  • System A, involving gas processing facilities, wellheads and pipelines in Turaif which will feed the Waad Al Shamal phosphate mining project in the region, is in the final stages, mechanical completion will happen soon in a month or two before production starts. (September 2017)
Project Contract Awards - Feed
Contractor Prequalified Contractor Bids Submitted Contractor Awarded | Contract Value
  • Fluor
  • Foster Wheeler
  • Jacobs Engineering
  • KBR - Kellogg Brown & Root
  • Mustang Engineering
  • SNC Lavalin
  • Worley Parsons
  • Fluor
  • Foster Wheeler
  • Jacobs Engineering
  • KBR - Kellogg Brown & Root
  • Mustang Engineering
  • SNC Lavalin
  • Worley Parsons
  • Fluor
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
  • JGC Corporation of Japan
  • SNC Lavalin
  • Larsen & Toubro of India
  • JGC Corporation of Japan
  • Larsen & Toubro of India
  • SNC Lavalin
  • JGC Corporation of Japan($200 million)
  • SNC Lavalin($800 million)
Related Projects
Aramco’s System B Shale Gas Project
Aramco’s System A Shale Gas Project
Project Schedule

Q4 2014: Invitation to Bid for EPC for System A Shale Gas Project

February 2015: Shorlisting of EPC for System B Shale Gas Project

March 2015: Bid Submission EPC for System A

August 2015: Contract Award EPC for System A Shale Gas Project

October 2015: Bid Submission EPC for System B

March 2016: Contract Award EPC for System B Shale Gas Project

Project Scope

Shale Gas Project is divided into two phases:

System A – It will have the capacity of 66 million cf/d.


System B – It will produce 200 million cf/d of gas in Turaif to supply a power plant at the nearby Waad al-Shamal phosphate mining development. The gas will be sent through a 70-kilometer pipeline.

 

Shale gas is the conventional natural gas which is trapped between impermeable rock formations, usually deep underground. To free the resource, it is necessary to create permeability in the surrounding rocks to release the gas. Creating permeability in rock to release gas is achieved by a process known as ‘fracking’, which involves drilling long horizontal sections and creating artificial permeability by fracturing. 

 

Saudi Arabia has the world’s fifth largest shale gas deposits of about 645 trillion cubic feet while the conventional gas resources stand at 282.6 trillion cubic feet. 

 

With its anticipated economical growth, Saudi Arabia is expected to double the gas consumption from 3.5 trillion cubic feet per year (tcf/y) in 2011 to 2030. 

 

So far Saudi Aramco invested $3 billion capital expenditure for the exploration of the shale gas resources around the Kingdom, and had earmarked an additional $7 billion for it.

Project Structure:
The project client is Saudi Aramco.
ChristineKeoks
Designation: Projects Department Officer
Department: Saudi Aramco
Phone: +966 3-874-2219
Khalidal-Falih
Address: Saudi Aramco
Designation: Chief executive officer .CEO. and president
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