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Oil giant Aramco has awarded two contracts worth USD 3.3 bn to a joint venture that includes Chinese state oil major Sinopec and Spanish engineering firm Tecnicas Reunidas for the development of a new gas facility in the Kingdom, a statement by the Spanish company read yesterday.
What we know: The agreement will see the JV build a natural gas liquids (NGL) fractionation facility at the huge Riyas natural gas facility on an engineering, procurement and construction basis. It is divided into two packages: the development of Riyas NGL fractional trains and the Riyas NGL common facilities, which will be home to utilities, storage and export units, according to the statement. The project is expected to take over three years for completion.
Project scope: Once operational, the NGL plant is set to process a combined total of 510k barrels of NGL per day, to make high-value hydrocarbons including ethane, propane, butane, and pentane.
SOUNT SMART– NGL fractionation refers to a boiling process that sorts out the different components found in natural gas liquids. NGL is made up of hydrocarbons including ethane, propane, and butane that are more valuable in use when separated. The separated hydrocarbons are then typically used to make petrochemicals.
About the JV: The JV is 65% owned by Tecnicas with the remaining 35% stake held by Sinopec. The majority ownership held by the Spanish company will see it account for over c. USD 2.2 bn of the total investment, according to the statement.
This is Tecnicas Reunidas’ first venture with Aramco: The mega NGL fractionation project is the first to be awarded to Tecnicas by Aramco following a strategic alliance inked in September. That’s when the Spanish company and Sinopec inked an agreement to cooperate globally on petrochemicals, natural gas, and transition projects.
