The UAE’s Al-Asab Establishment has submitted the lowest bid on a gas pipeline project linking Abu Dhabi’s gas production operations, according to sources close to the bidding process.
Project owner Abu Dhabi Gas Industries (Gasco) tendered the estimated $30m engineering, procurement and construction (EPC) contract on the Bu Hasa-Bab-Thamama pipeline in July last year.
After commercial bids were submitted in the fourth quarter of 2012, Al-Asab emerged ahead of the other bidders, which include UAE-based Alsa Engineering and Target Engineering, and Oman’s Galfar Engineering & Contracting.
The contract, which covers the construction of a 50-kilometre, 30-inch pipeline and associated facilities, is expected to be awarded later in the first quarter.
Meanwhile, Al-Asab has been awarded a subcontract on another Gasco project – the Habshan-Maqta-Taweelah pipeline – which is being constructed by UAE-based contractor Dodsal.
Dodsal, which won the project’s $450m EPC contract in July 2012, has hired Al-Asab to carry out the earthworks, right of way and berming work.
Gasco is a joint venture of state-owned Abu Dhabi National Oil Company (Adnoc) and three international oil companies: UK/Dutch Shell Group; France’s Total; and Portugal’s Partex.