Saudi Arabia’s state-owned oil giant Aramco has rejected bids for three of the four packages on a 2,400 megawatt integrated gasification combined cycle (IGCC) plant at an oil refinery in Jazan, the Arab News said.
Aramco asked bidders to lower their tender amounts “as the initial bids failed to meet its estimation of each packages’ market value,” the report said.
The fourth package is not part of the retender.
Saudi Aramco is reportedly in talks with China’s Sepco III regarding that part of the project, sources said.
The IGCC plant is designed to supply the 400,000 barrel per day oil (bpd) refinery and other consumers around the industrial Jazan port on the Red Sea.
Construction of the refinery has not started.
The Jazan refinery is designed to process heavy and medium crude for production of 75,000 bpd of gasoline and 250,000 bpd of ultra-low-sulphur diesel, the Arab News said.