AKG-2 gets ready to roll

16 June 2006
The Japanese/French joint venture (JV) of Chiyoda Corporation and Technip has received a letter of intent for the onshore package on phase 2 of the Al-Khaleej gas (AKG-2) development. The team was expected to win the estimated $1,500 million engineering, procurement and construction (EPC) work, which was included as an option in its RasGas III contract awarded last September. The AKG-2 project involves the delivery and processing of North field gas to local domestic consumers (MEED 30:9:06).

The onshore contract will take about 40 months to complete and includes the construction of acid gas removal, dehydration, fractionation, ethane and natural gas liquids (NGL) recovery, and sulphur recovery units, as well as compression facilities. The JV is expected to be assisted by its main subcontractors on the RasGas III project, Athens-based Consolidated Contractors International Company (CCC) and Dubai-based Dodsal.

A formal award has still to take place on the offshore package. The offshore contractor on RasGas III, Jebel Ali-based J Ray McDermott (Middle East), has an option to carry out the AKG-2 work. RasGas Company will build and operate AKG-2 on behalf of the client, ExxonMobil Middle East Gas Marketing.

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