The Diplomat
Técnicas Reunidas and the Chinese group SEG (Sinopec Engineering Group) have obtained two contracts in Saudi Arabia for more than 3,300 million dollars (3,027 million euros), as reported yesterday by the Spanish engineering company to the National Securities Market Commission ( CNMV).
Specifically, the energy company Saudi Aramco has awarded a joint venture formed by Técnicas Reunidas and Sinopec the development of new natural gas liquids (NGL) fractionation facilities in Saudi Arabia.
The company chaired by Juan Lladó thus adds a significant contract that allows it to boost its contracting portfolio by practically a fifth and reinforces its position in a key market where it has already executed some of its largest projects, as stressed by Técnicas Reunidas.
The work will be carried out on the basis of two EPC contracts (engineering, purchasing and construction), one of them for the execution of the Riyas NGL fractionation trains – called package 1 – and another for the development of the facilities common LGN, also from Riyas –package 2–, which includes public service, storage and export infrastructure.
In this sense, the total investment derived from the two contracts amounts to more than 3,300 million dollars (3,027 million euros) and, given that the ‘joint venture’ is made up of 65% by Técnicas Reunidas and 35% by Sinopec, the Spanish company is responsible for more than 2,150 million dollars (1,972 million euros) of that amount, Europa Press reports.
In its explanation to the CNMV, Técnicas Reunidas points out that the main objective of the project is to make possible the fractionation of NGL in order to produce ethane, propane, butane and pentane.
This is the first project that Saudi Aramco awards to Técnicas Reunidas following the Strategic Alliance recently signed by the Spanish company with Sinopec Engineering Group for the development of joint projects.
All in all, the new facilities that Técnicas Reunidas and Sinopec will develop will fractionate 510,000 barrels of NGL per day.
The two trains of package 1 will process 255,000 barrels per day each and will include fractionation, treatment, dehydration and refrigeration units, while the common facilities of package 2 will facilitate product storage and chemical storage, as well as various equipment. additional, which will include vapor and condensate recovery systems; a water supply plant; air and nitrogen instrumentation systems; machinery cooling equipment, and drainage systems and flare systems, among others.
The expected duration of the project is about 46 months for package 1 and about 41 months for package 2, with the dedication of a maximum total level of 575 engineers, of which more than 70% will be from Técnicas Reunidas.
Following the announcement of the award of the two contracts, the shares of Técnicas Reunidas rose more than 7.3% yesterday on the Madrid Stock Exchange.
