Tecnicas Reunidas won Jizan Gasification Offsites
The national oil company (NOC) Saudi Aramco selected the Spanish-based engineering company Tecnicas Reunidas for the engineering, procurement and construction (EPC) contract for the Offsites and Utilities package of the Jizan Integrated Gasification Combined Cycle (IGCC) Power Plant project on the southwest coast of Saudi Arabia.
The Jizan Gasification project, or Jizan is the cornerstone of the whole Jizan Industrial City project.
Located along the Redsea in the utmost southern province of Saudi Arabia neighboring Yemen, this region of Saudi Arabia has been ranked by the Kingdom on the top of the list for economical and social development.
As master pieces of the Jizan Industrial City, Saudi Arabia has planned greenfield:
– Jizan Refinery and Petrochemical complex
– Port of Jizan
– Jizan IGCC Power Plant
Originally designed for 4,000 MW, the Jizan IGCC Power Plant has been revised down to 2,400 MW because of its costs were spiraling to the double than budgeted.
For this reason, Saudi Arabia Authorities mandated Saudi Aramco to take over the operations of the Jizan IGCC Power Plant.
Saudi Aramco selected Shell gasification process
In October 2012, the Spanish engineering company Tecnicas Reunidas had been awarded the refinery hydrocracker and diesel hydrotreater in a context where few engineering companies were enthusiastic to take risks of that size in such remote area than Jizan.
Because of this remote conditions of working in Jizan far from any logistic base, winning a first package in 2012 gave a strong competitive advantage to Tecnicas Reunidas in preparing ground and reducing the risks value in the following packages.
Taking the opportunity of the second call for tender organized by Saudi Aramco to lower again all the commercial offers, Tecnicas Reunidas won Jizan Gasification Offsites and Utilities package as the lowest bidder at $1.7 billion.
In awarding this Offsites and Utilities package, Saudi Aramco is preparing to award the other packages in following since this Jizan IGCC Power Plant is the pre-requisite project to build all the other units of the Jizan Industrial City.