Register for MEED's guest programme 

Bids have been submitted for a low-carbon hydrogen project that Saudi Basic Industries Corporation (Sabic) is due to develop in the industrial city of Ras Al Khair in Saudi Arabia’s Eastern Province.

The project, known as the San VI Low-Carbon Hydrogen Complex, is estimated to be worth $300m.

Bids for the project were submitted ahead of the deadline of 31 March 2024, according to information first obtained by MEED Projects.

The following companies are understood to have submitted bids:

• Larsen & Toubro (India)
• JGC Corporation (Japan)
• Samsung Engineering (South Korea)
• Hyundai E&C (South Korea)
• Toyo Engineering Corporation (Japan)

When it was originally tendered in October last year, the project’s bid submission deadline was set for the end of December 2023.

Sabic is also developing a second low-carbon hydrogen project, which is currently in the study phase.

This project, known as the Horizon II Low-Carbon Hydrogen Complex, is also estimated to have a value of $300m.

The scope of both projects is expected to include:

• Construction of processing units
• Construction of storage facilities
• Construction of distribution units
• Installation of hydrogen compressors
• Construction of associated facilities

The main contract tender for the Horizon II Low-Carbon Hydrogen Complex is anticipated to be issued by 2025.

National oil company Saudi Aramco owns a 70% stake in Sabic.

In October last year, Ashraf Al Ghazzawi, executive vice-president of strategy and corporate development at Aramco, said the company aims to produce 2 million tonnes of low-carbon hydrogen by 2030.

MEED's April 2024 special report on Saudi Arabia includes:

> GVT & ECONOMY: Saudi Arabia seeks diversification amid regional tensions
> BANKING: Saudi lenders gear up for corporate growth
> UPSTREAM: Aramco spending drawdown to jolt oil projects
> DOWNSTREAM: Master Gas System spending stimulates Saudi downstream sector
> POWER: Riyadh to sustain power spending
> WATER: Growth inevitable for the Saudi water sector
> CONSTRUCTION: Saudi gigaprojects propel construction sector
> TRANSPORT: Saudi Arabia’s transport sector offers prospects