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Saudi Aramco sets new deadline for Jafurah cogeneration project

The cogeneration plans is planned to have a power generation capacity is planned to be 270-320MW. (Image source: Adobe Stock)

Saudi Aramco has extended the bid submission date for its planned independent steam and power producer (ISPP) project in Jafurah to the end of February 2022

Saudi Aramco had initially set a bid submission date of 5 December for the project, but extended the deadline to give bidders more time to work on submissions. The project was retendered in 2021 after the original tender was cancelled in 2020.

According to sources close to the programme, it is believed that the tender has been issued to around five groups. The project will be developed under a public-private partnership (PPP) structure, with the successful developer signing offtake agreements for power and steam production.

The energy company had set a target of appointing a preferred bidder by April 2022 and to award the contract in July 2022, however this may be delayed following the extension of the bid deadline.

The capacity of the project is almost identical to the previous tender, however the planned commissioning date for the two phases of steam production have been pushed back respectively.

The cogeneration plans is planned to have a power generation capacity is planned to be 270-320MW.

For the low-pressure (LP) steam capacity, the project is planned to process a demand of 140 thousand pounds an hour (klb/hr) by 2024 and 373 Klb/hr by 2028. For the high pressure (HP) steam capacity, the target is for the scheme to process 112 Klb/hr by 2024 and 321 Klb/hr by 2028.

The Jafurah gas development is part of Aramco?s US$3.2bn unconventional resources programme, which aims to develop shale gas in three areas of the kingdom.

In line with the Vision 2030 masterplan, Riyadh is aiming to ensure the kingdom remains self-sufficient in gas supply as demand for power continues to grow in the residential and industrial sectors.