Saudi Aramco lets additional contracts for Jazan IGCC plant

Saudi Aramco has let two engineering and construction contract packages to Italy’s Saipem SPA, a unit of Eni SPA, for work related to the Jazan IGCC (integrated gasification combined-cycle) power plant project to be located adjacent to the 400,000-b/d refinery under development at Jazan Economic City, Saudi Arabia (OGJ Online, May 6, 2014; Oct. 22, 2012).

The first package includes engineering and construction of a gasification unit, soot-ash removal unit, acid gas removal unit, and hydrogen recovery units, according to Saipem.

Under the second package, Saipem will provide engineering and construction for six sulfur recovery unit trains as well as associated storage installations, the company said.

In addition to engineering and construction activities, Saipem’s scope of work under both packages will include procurement, precommissioning, assistance to commissioning, and performance tests of the units and installations, according to the company.

These two packages are part of Aramco’s development of the largest gasifier-based power plant in the world, which will use vacuum residue produced by the nearby Jazan refinery as well as high-sulfur fuel oil to produce power for both the refinery and the national grid, Saipem said (OGJ Online, Nov. 13, 2012).

Aramco also let a contract to Saipem for Loops 4 and 5 of the 1,170-km Shedgum-Yanbu pipeline, which delivers NGLs from gas separation and processing plants in Shedgum along the Persian Gulf to fractionation sites in Yanbu on the Red Sea’s coast, Saipem said.

Saipem’s scope of work under this third contract includes detailed design, engineering, procurement, installation, commissioning, and start-up assistance for two pipelines, which are scheduled to be completed in second-half 2017, according to the company.