Construction contracts for a new crude oil pipeline between Saudi Arabia and Bahrain are expected to be tendered by the end of 2014. The front-end engineering and design (FEED) for the pipeline has already been completed, according to Saudi Aramco.
The 115km-long pipeline will run overland for 74km, with the remaining 31km being sub-sea and it will transport crude from Aramco’s Abqaiq plant to Bahrain.
The FEED has been done by WorleyParsons of Australia and the next step would be to release the tender for the engineering, procurement and construction contract, the Aramco official said. The cost of the project is estimated at $350 million.
The pipeline is expected to be commissioned by the third quarter of 2016. With a capacity of 350,000 barrels per day (bpd), the new link will replace an ageing 230,000 bpd pipeline. It is 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 $6 billion.
