* South Korean firms likely to win Wasit deals
* SK, Daelim submit competitive prices
* Plant part of a push to increase gas processing capacity
RIYADH, Jan 16 South Korean firms lead the race
for deals to build Saudi Aramco's [SDABO.UL] largest gas plant
Wasit, which is part of the state oil firm's push to raise gas
processing capacity, industry sources said on Sunday.
Gas projects have taken priority in the world's top oil
exporter as they can cater for rising domestic demand and help
Saudi Arabia avoid burning oil it would rather sell
South Korea's SK Engineering and Construction [SKEC.UL] is
lowest bidder on three construction packages which are, the gas
unit, the sulphur recovery unit, and the NGL fractionation
facilities, sources said.
South Korea's Daelim Industrial (000210.KS) is front-runner
on the co-generation plant, two sources said. However, other
sources said Samsung Engineering (028050.KS)'s could also be in
the running for that package.
Aramco's spokesman could not immediately comment on the
For a table on companies that bid for Wasit, please click on
Wasit would be designed to process 2.5 billion cubic feet
per day (cfd) of gas from the offshore non-associated sour gas
fields Arabiyah and Hasbah when completed in 2014.
It would also produce around 1.75 billion cfd of sales gas.
Wasit is one of the gas plants Aramco plans to build. The
other one is Shaybah Natural Gas Liquids (NGL) whose bids are
now under evaluation.
"Nobody believes three to four packages to go to one
company, maximum two packages for one company," said a source
who declined to be identified. "They have to see the balance
between Wasit and Shaybah and Aramco is rushing to evaluate
Shaybah," the source added.
However another source said the list of winning companies is
almost final. "Who can meet such a low price? it is a great
price, prices were quite lower than expected," the source said.
Aramco Chief Executive Khalid al-Falih had said that
together with two other plants, Khursaniyah and Karan, the Wasit
plant would help Saudi Arabia process its targeted production
increase of raw gas to 15.5 billion cubic feet per day (cfd) by
2015 from 10.2 billion cfd. [ID:nLDE63P1QZ]
(Reporting by Reem Shamseddine; Editing by David Holmes)