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NEWS

 

Foreign firms bid for Saudi Aramco’s Fadhili gas project

Foreign engineering firms have submitted bids to build a gas plant in eastern Saudi Arabia for state oil giant Saudi Aramco at an estimated cost of $5 billion to $6 billion, industry sources said.

Aramco’s decision to move ahead with the project at Fadhili is a sign that Saudi Arabia continues to make big investments that it views as key to its economic future, despite slowing or shelving some less vital projects as the plunge in oil prices since last year hurts state finances.

The new plant is to have a processing capacity of 2.5 billion standard cubic feet per day (scfd) of sour gas from the onshore Khursaniyah and offshore Hasbah fields.

South Korea’s Daelim Industrial, Hyundai Engineering and Construction and Britain’s Petrofac have bid for the project individually, the sources said.

In addition, three consortiums have been formed to bid: South Korea’s GS Engineering and Construction with Spain’s Tecnicas Reunidas, Italy’s Saipem with Japan’s JGC, and South Korea’s Samsung Engineering

together with Daewoo E&C.

The project is split into three construction packages for the gas processing unit, utilities and offsite facilities such as nitrogen, steam, power and water systems, and sulphur recovery. Some bidders are seeking only one package.

Aramco did not respond to a request for comment on Thursday.

It said in its 2014 annual report, published in May this year, that the Fadhili gas plant “is on track to come onstream by 2019”.

It usually takes about two months to evaluate bids for such projects after they are submitted, industry sources said.

Fadhili, together with Aramco’s other gas projects in Wasit and Midyan, are slated to add more than 5 billion scfd of non-associated gas processing capacity, which will help the company meet soaring domestic demand for industrial use and electricity generation in the world’s largest oil exporter.

Gas production remains a top priority for Saudi Arabia as it wants to limit direct crude oil burning for electricity, thereby preserving its ability to increase oil exports.

 
 
Oman, Iran hold fresh gas talks

The Islamic Republic of Iran and Oman have launched a new round of talks for finalizing the operations of transporting South Pars sour gas to Oman's Sohar port. "An Iranian consulting company has been chosen for studying the construction of the pipeline, which is expected to transfer Iran's natural gas to Oman,” the MD of the National Iranian Gas Export Company Ali Reza Kameli explained.

He added that the pipeline project will be implemented in two phases, adding that “the onshore part of the project will run for about 200 km from Rudan region to Kuh Mobarak [both in Iran], while the undersea part, will travel for almost another 200 km to connect Kuh Mobarak to Oman’s Sohar port.”

According to the project schedule, the engineering studies on the onshore and offshore phases will be carried out simultaneously in order to prevent any disruption during its implementation, he noted.

In 2013, Iranian Oil Minister Bijan Namdar Zanganeh and his Omani counterpart Mohammed bin Hamad Al Rumhy signed a ‘Memorandum of Understanding’ (MoU) to finalize the gas contract between the two sides.

According to the agreement the Islamic Republic will supply the Persian Gulf state with 10 billion cubic meters of natural gas per annum.

The gas will be pumped through a pipeline that will run all the way from the southern Iranian province of Hormozgan to Oman's Sohar port where it will join the country’s domestic natural gas network.

 
 
POGC starts Phase 20&21 pipelay

Pars Oil and Gas Company (POGC) has started underwater pipe-laying operations for Phases 20 and 21 of the massive South Pars gas field, project manager of the phases said. Once completed the 105-km long pipelines will deliver sour gas recovered from the phases to the onshore refining facilities in Assaluyeh, south of Iran, said Alireza Ebadi.

So far 40 km of Phase 21 underwater pipes have been laid while a record has been set for laying 171 pipes in a day's work during the operation, he said in a Shana report.

Platforms of the phases, due to be completed by mid-September, will be installed in their places by the POGC once the pipe-lay operations are over.

Phases 20 and 21 of South Pars gas filed are being developed for production of 50mcm /d of processed natural gas for domestic consumption, a million tons a year of ethane for use by petrochemical plants, 1.05 million tons a year of high-quality liquefied gas for exports and 75,000 barrels a day of condensate.

South Pars, divided into 29 development phases, holds 40 tcm of natural gas, or 21% of world's total gas reserves, and 50 billion barrels of condensate.

South Pars covers an area of 9,700 square kilometers, 3,700 square kilometers of which are in Iran's territorial waters in the Persian Gulf. The remaining 6,000 square kilometers are situated in Qatar's territorial waters.

The gas field is estimated to contain a significant amount of natural gas, accounting for about eight percent of the world's reserves, and approximately 18 billion barrels of condensate.

 
 
Blackmer has announced the availability of the NG and NGS Series Reciprocating Gas Compressors as a solution for oilfield applications.

The NG and NGS Series compressors have been designed to optimize operational capabilities in a number of critical oilfield production and storage applications, including wellhead annulus gashead pressure reduction, wellhead vapor control, pressure boosting, tank-battery vapor control and recovery, gas gathering, gas evacuation, gas blanketing, flare elimination, and enhanced oil and gas recovery.

The NG Series compressors, which are available in eight models, are highly efficient and available in heavy-duty single- and two-stage configurations. Their advanced design technology and materials, which includes a standard double seal with single distance piece located between two sets of seals on each piston rod, provide maximum performance with minimum maintenance. This includes leakage control that prevents oil contamination of the compressed gas stream.

The NGS Series compressors have been designed for the handling of sour gas that may contain up to 8% dry hydrogen sulfide (H2S) and are also available in eight models and in single- or two-stage configurations with standard double seal. To enhance their compatibility with sour gas, the NGS compressors also feature select parts (that follow NACE guidelines) in all gas-containment areas and steel wrist pins that ride on steel needle bearings for extra life under severe operating conditions.

 

 
 
SemCAMS Announces Startup of New Pipeline

SemCAMS, a subsidiary of SemGroup® Corporation (NYSE:SEMG), today announced the startup of a new, sour gas gathering line servicing the Wapiti area. The pipeline was officially placed into service on Saturday, June 27, 2015. As previously announced in May 2014, the project is supported by a 10-year term transportation service agreement with NuVista Energy Inc.

"SemCAMS is pleased with NuVista's continued growth and the confidence they have in our ability to handle liquid rich gas production from the Wapiti/Elmworth area," said David Gosse, SemCAMS' vice president and general manager. "We understand how important it is for a producer to get to market on schedule. We have seen a concerted effort by both parties to meet this on-stream date for NuVista's production facilities and SemCAMS' new infrastructure. We look forward to further growth including our previously announced Wapiti Compressor planned for 2016 and proposed new gas plant to provide superior service to area producers."

The new gathering line is adjacent to SemCAMS' existing Northwest Wapiti pipeline and is called the Northwest Wapiti Loop. This new pipeline consists of a 21 mile, 8 inch, sour gas gathering pipeline with 30 mmcf/d of capacity. SemCAMS will own and operate the new pipeline. This line connects to SemCAMS' pipeline system for processing at SemCAMS' K3 plant.

SemCAMS anticipates continued growth for the Montney gas play. To meet producers' development plans, SemCAMS has proposed building a new sour gas plant in the Wapiti/Elmworth area. As proposed, this plant would be designed to maximize NGL recoveries and handle condensate and resource water, with an acid gas transfer and injection scheme, and would connect to TCPL, Alliance, Pembina and SemCAMS' existing sour gas pipeline system. SemCAMS' expanded pipeline system and its K3 plant would bring enhanced reliability to this project by providing an acid gas handling capability.


 
 
 

 

 
 
 
 
 
 
 
 
 
 
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