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Saudi Aramco awards $690 million desalination plant contract to Lamar Holding

The project includes power and utility facilities and has a design capacity of 80,000 cubic meters per day.

Saudi Aramco awards $690 million desalination plant contract to Lamar Holding
[Source photo: Anvita Gupta/Fast Company Middle East]

The Middle East is home to almost half of the world’s desalination capacity, with Saudi Arabia alone having an installed capacity of 9 million cubic meters per day.

In a recent development, a seawater desalination plant worth $693 million will be built by Lamar Holding, a contract that Saudi Aramco has awarded.

The Jafurah gas development scheme includes a seawater reverse osmosis desalination plant, which also has a water supply system.

According to a MEED assessment, the project includes power and utility facilities and has a design capacity of 80,000 cubic meters per day. Additionally, it has a substantial water distribution network component that spans 200 km.

Meanwhile, the facility is anticipated to have a 270–320 megawatt generating capacity by 2023. Along with Lamar Holding, the regional utility Mowah Co. is investing in the seawater desalination facility.

The project’s designated engineering, procurement, and construction contractor will be a Chinese business called SEPCO Electric Power Construction Corp.

Jafurah is located in the Southeast of Ghawar, the largest conventional oil field in the world. Its gas development plan is a component of Aramco’s $3.2 billion program for unconventional resources, which aims to support shale gas in three areas.

The agreement to build a standalone steam and power plant to support the gas development project was officially signed in July by Kamco, a South Korean utility developer and investor.

Aramco has designated Sumitomo Mitsui Banking Corp. as the financial advisor for the independent utility schemes supporting the project.

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