Several international and Gulf engineering firms are lining up for the contract to build a power station at Fadhili which will feed Saudi Aramco's new gas plant, industry sources said on Wednesday.

The independent power producer (IPP) being built for Saudi Electricity (SEC) and Saudi Aramco will have a capacity of 1,300 to 1,600 megawatts (MW) and will also produce steam.

Surplus power left after supplying the gas processing plant will go to the electricity grid.

Potential bidders include Malaysia's Tenaga in consortium with Japan's JGC Corp, and Japan's Mitsubishi Corp with Qatar's Nebras Power, the sources said.

France's Engie and Saudi Arabia's Acwa Power are bidding solo, according to the sources, who spoke on condition of anonymity as the information is not public.

A Mitsubishi spokesman confirmed the company was considering bidding for the Fadhili IPP project, but declined to say with whom it might be teaming up.

Nebras could not be reached for comment. JGC, Tenaga and Acwa Power declined to comment. Engie was not immediately available for comment.

Previously set to end on September 15, bidding is now due to close on November 1, said one of the sources.

The project will be based on a build, own, operate and transfer (Boot) basis and the power agreement will be for 20 years, SEC said on its website. SEC will hold 50 per cent of the project, Saudi Aramco 10 per cent with the bid winner taking 40 percent.

The plant will use 475 million standard cu ft per day (scfd) of low BTU gas per day from the Khursaniyah oilfield.

Commercial operation of the project is expected in February 2020, SEC said on its website. – Reuters