u.s. economy

Spanish engineering and construction firm Tecnicas Reunidas has won a contract from Saudi Aramco to build a clean fuels unit at its Ras Tanura refinery, three industry sources said.

British or Spanish firm were the most likely to win the Aramco contracts.

Tecnicas Reunidas was the lowest bidder to build units for a cleaner fuels project at Ras Tanura refinery, originally estimated to cost more than $2 billion, aimed at removing sulphur from refined oil products, sources said.

The project is part of a drive by the kingdom to meet stricter environmental standards in export markets.

One of the sources said the contract worth about 1$1.8 billion while another said it was $1.5 billion.

“They signed an LOI (letter of intent) already and they are expected to sign the contract after the final approval of Saudi Aramco,” said a source familiar with the matter.

Major oil companies and Saudi Arabia, the world’s biggest exporter of crude oil, has been cutting back expenditures to cope with the lower oil prices.

However, Aramco revived bidding for a cleaner fuels project at its biggest oil refinery in Ras Tanura following speculation that low crude prices would force the project’s cancellation.

The Ras Tanura clean fuels project, including a naphtha hydrotreater, was to be part of a second phase of upgrades and was originally due to go on stream in 2016.

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