Aramco awards $1bn Hasbah gas expansion contract

India's Larsen & Toubro and Singapore-based Emas AMC bag contract worth over $1bn for the expansion of the offshore Hasbah sour gas field

Photo for illustration only.
Photo for illustration only.

Oil giant Saudi Aramco has awarded a $1bn-plus contract to India's Larsen & Toubro (L&T) and Singapore-based Emas AMC for the expansion of the offshore Hasbah sour gas field, industry sources have told Reuters.

Increasing its supply of gas is a top priority for Saudi Arabia. Many industrial firms have complained about a shortage crimping expansion plans, while the Kingdom is trying to use more of the fuel for power generation and water desalination instead of burning crude oil, which it wants to export.

Work on the expansion scheme includes building platforms and pipelines, with the field's supply feeding the Fadhili gas plant, a $6bn complex that will include a gas processing unit and sulphur recovery.

It is the second major contract win for the duo in recent months: Emas AMC, a unit of Ezra Holdings, also teamed up last year with the Indian firm to secure a long-term contract with Aramco to work on offshore facilities.

The expansion of Hasbah will supply 2bn standard cubic feet per day (scfd) of gas to the Fadhili plant, for which Aramco awarded a construction contract last year. The remaining 500mn scfd of supply for the plant will come from the onshore Khursaniyah field.

Hasbah already feeds Wasit, another major gas plant. Aramco said in March it had started producing natural gas from the offshore field ahead of peak summer demand in the world's largest oil exporting country.

An industry source told Reuters the Wasit plant would reach full capacity in July of processing 2.5bn scfd of gas.

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