Aramco awards Hasbah gas expansion contract to L&T and Emas AMC - sources | Reuters

KHOBAR, Saudi Arabia State oil giant Saudi Aramco has awarded a $1 billion-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 said. 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

Reuters May 16, 2016 18:01:45 IST
Aramco awards Hasbah gas expansion contract to L&T and Emas AMC - sources  
| Reuters

Aramco awards Hasbah gas expansion contract to LT and Emas AMC  sources  
 Reuters

KHOBAR, Saudi Arabia State oil giant Saudi Aramco has awarded a $1 billion-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 said.

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 $6 billion complex that will include a gas processing unit and sulphur recovery.

Saudi Aramco declined to comment. L&T did not respond to emailed requests for comment, while Emas was not available for immediate comment.

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 2 billion standard cubic feet per day (scfd) of gas to the Fadhili plant, for which Aramco awarded a construction contract last year. The remaining 500 million 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 2.5 billion scfd of gas.

(Reporting by Reem Shamseddine; Additional Reporting by Promit Mukherjee and Henning Gloystein; Editing by Mark Potter)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

also read

Petrol and diesel prices remain unchanged today, check fuel prices in your city
India

Petrol and diesel prices remain unchanged today, check fuel prices in your city

Petrol and diesel prices remain unchanged today: In Mumbai, petrol can be bought at Rs 107.54 per litre and diesel at Rs 97.45 for one litre

Fuel prices remain unchanged today, petrol costs Rs 107.54 a litre in Mumbai, diesel at Rs 97.45
India

Fuel prices remain unchanged today, petrol costs Rs 107.54 a litre in Mumbai, diesel at Rs 97.45

Petrol Diesel price today: In Delhi, petrol prices were up 35 paise on Thursday to reach Rs 101.54 a litre while the rate of diesel was at Rs 89.87. Prices remained unchanged on Friday

Fuel price hike: Petrol becomes dearer by 24 paise in Mumbai at Rs 107.54 per litre, diesel up 15 paise at Rs 94.39
India

Fuel price hike: Petrol becomes dearer by 24 paise in Mumbai at Rs 107.54 per litre, diesel up 15 paise at Rs 94.39

Petrol and diesel price hiked today: In Delhi, petrol costs Rs 101.54 a litre while the rate of diesel was at Rs 89.87. Check latest rates in your city Latest Petrol and diesel prices at Firstpost.com