Major contracts likely to be awarded for the US$ 350 mn Saudi-Bahrain pipeline project soon

Posted on 21st January 2015

The first construction contracts for a new crude oil pipeline between Saudi Arabia and Bahrain are expected to be awarded by the second quarter of this year, a senior Bahrain Petroleum Company (BAPCO) official has said.

Saudi Bahrain pipeline

In a statement issued after Bahrain hosted a key meeting of stakeholders, BAPCO general manager for major engineering projects Abdul Jabbar Abdul Karim said the joint job explanation meeting was for the onshore engineering, procurement and construction package of the AB pipeline project, said a report in the Gulf Daily News (GDN).

A new 30-inch diameter, 115-kilometer-long pipeline running onshore for 74 kilometers, with the remaining 42 kilometers being sub-sea, is planned to be built to replace the current ageing pipeline.

“It will also cater to future increase in crude oil demand post implementation of the BAPCO modernisation programme,” Abdul Karim said. “Request for proposals for both portions of the project were issued earlier this month.”

The meeting was attended by senior Aramco and BAPCO management along with project team members and selected bidders. An Aramco official had told the GDN last year that the cost of the project is estimated at US$350 million.

With the new pipeline coming onstream, the transport capacity from Aramco's Abqaiq plant to Bahrain will be raised to 350,000 barrels per day (bpd) from 230,000 bpd currently. The front-end engineering and design of the pipeline was completed last year by WorleyParsons of Australia. The pipeline is a key pre-requisite for BAPCO's planned Sitra refinery expansion up to 500,000 bpd total capacity, which is estimated to cost upwards of $6 billion.

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