Saudi Aramco close to awarding $500 mln shale contract: WSJ

Saudi Arabian Oil Company (Saudi Aramco) is close to awarding a $500 million contract to SNC-Lavalin to build the second phase of its shale gas development in Turaif, The Wall Street Journal reported, citing unnamed sources close to the project.

The Canadian engineering and construction firm reportedly submitted the lowest bid price for the project in northern Saudi Arabia.

The second phase, System B, will include processing facilities, wellheads and pipelines, and add 200 million standard cubic feet a day (scf/d) of gas capacity.

Japan’s JGC Corporation is currently building System A, which will add nearly 70 million scf/d.

Gas will be sent via pipeline from Turaif to the Waad al-Shamal power plant, which is currently under construction.