Saudi Aramco has awarded a contract to India’s Larsen & Toubro (L&T) to build a plant for its Midyan gas field with a processing capacity of 2.1mn cubic metres per day of non-associated gas and 4,500 bpd of condensate
While the value of the contract has yet to be revealed, industry sources have estimated it to be around US$300mn.
Fahad al-Helal, Saudi Aramco’s executive director of project management, said, “The project will also include building two pipelines of total length of 98km to deliver sales gas and hydrocarbon liquids to a power plant near the port city of Duba.
“This would enable efficient generation of power and avoid the burning of high-value diesel.”
Saudi Arabia is boosting its output of the natural gas needed to meet rapidly rising domestic power demand and supply raw materials to its strategically important petrochemical industry, Reuters reported.
The processing plant is expected to be online by mid-2016, state news agency SPA said.
Midyan is one of the new gas fields in north-west Saudi Arabia to produce gas for power plants. It was discovered in the 1980s and has significant reserves. according to industry sources.
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