The first construction contracts for a new $350 crude oil pipeline between Saudi Arabia and Bahrain are expected to be awarded by the second quarter of this year, TradeArabia News Service reported.
The first 115km of the pipeline will be constructed onshore, while the remaining 42km will be built under the sea.
“[The pipeline] will also cater to future increase in crude oil demand post implementation of the Bapco modernisation programme,” Bapco general manager for major engineering projects Abdul Jabbar Abdul Karim said.
“Request for proposals for both portions of the project were issued earlier this month,” he added.
The onshore engineering, procurement and construction package of the Saudi-Bahrain project was discussed by stakeholders in a meeting hosted by Bapco, a Gulf Daily News report said.
The meeting was attended by senior Aramco and Bapco management along with project team members and selected bidders.
The new pipeline will replace the current aging infrastructure and raise Saudi Aramco’s transport capacity from its Abqaiq plant to Bahrain to 350,000 barrels per day (bpd) from 230,000 bpd currently, according to TradeArabia.
The pipeline is also a key pre-requisite for Bapco’s planned Sitra refinery expansion up to 500,000 bpd total capacity, which is estimated to cost upwards of $6bn.
