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Saudi Aramco starts execution on Jizan Gasification project

Tecnicas Reunidas won Jizan Gasification Offsites

2B1st_Project_Smart_Explorer_Sales_Pursuit_ToolThe 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.

Saudi-Aramco_Jizan_Gasification_MapAs 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.

With 500MW, Saudi Aramco will be the main consumer of this Jizan IGCC Power Plant with the Refinery and Petrochemical Complex.

For this reason, Saudi Arabia Authorities mandated Saudi Aramco to take over the operations of the Jizan IGCC Power Plant.

Then Saudi Aramco licensed Shell for the gasification process.

Saudi Aramco selected Shell gasification process

At the scale of the Jizan IGCC Power Plant, the gasification process is a project by itself for which Saudi Aramco organized dedicated call for tenders.

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.

Saudi-Aramco_Jizan_Gasification_Power-PlantBecause 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.

In this perspective Saudi Aramco is expecting Tecnicas Reunidas and the other engineering companies to complete their respective EPC contract for the Jizan Gasification project by 2017.

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