Adnoc sets deadline for pipeline bidders

23 October 2009

Contractors have until 5 November to submit technical bids for final major contract on gas scheme

State-run Abu Dhabi National Oil Company (Adnoc) and Germany’s Linde have set final bid dates for the last major contract on their $900m joint venture industrial gas scheme, Adnoc Linde Industrial Gases (Elixier).

The joint venture partners have given contractors until 5 November to submit technical bids outlining engineering proposals for the deal, and until 19 November to submit commercial bids.

The engineering, procurement and construction (EPC) contract covers a 45-kilometre-long, 48-inch-diameter pipeline linking Mirfa, to the west of Abu Dhabi, with the Habshan oil field to the south of the capital. The deal is worth an estimated $150m.

According to one senior source at Linde, the joint venture partners will award the contract “within weeks” of the commercial bid deadline. Firms bidding on the deal include Lebanon’s Contracting & Trading and India’s Punj Lloyd.

The pipeline will carry nitrogen from Elixier’s facilities at Mirfa to Habshan, where it will be injected into the oil field to maintain reservoir pressure, replacing the nat-ural gas Adnoc currently uses for this purpose.

Elixier has awarded about $750m worth of contracts on the scheme, including contracts to build two air-separation units at Mirfa. The units will break down air into oxygen and nitrogen so that Elixier can use the nitrogen for injection into the Habshan field.

The two units will have a total production capacity of 660,000 cubic metres an hour of nitrogen when they are completed in 2011.

Elixier has awarded another contract to build an air-separation unit at Ruwais. The Ruwais unit will have a production capacity of 23,800 cubic metres an hour of nitrogen when it begins production in 2011.

Elixier will send the nitrogen from the Ruwais plant to a new Abu Dhabi Polymers Company petrochemicals plant, which is also being built at Ruwais.

Elixier awarded all three deals to build air-separation units to Linde, one of its two shareholders.

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