Alsa closes in on $70m Gasco contracts

10 October 2011

Local contractor set to win two $35m deals

Alsa Engineering & Construction is the frontrunner for two Abu Dhabi Gas Industries (Gasco) projects worth a combined $70m.

The local contractor is very close to winning engineering, procurement and construction (EPC) contract for an acid flare gas system at the gas processing complex in Habshan, having submitted the lowest bid at $35m.

Alsa also submitted a low bid for the 16 inch, 75-kilometre nitrogen pipeline from Mirfa to Ruwais, again at $35m. A source close to the project said that Gasco will be most likely award the contract by the middle of November.

Both parties are currently conducting “a review of contract documentation and finalisation that goes on between the client and the lowest bidder”, says the source.

Mirfa is home to a nitrogen plant owned by Elixier, a joint venture by Adnoc and Germany’s Linde. Elixier will supply nitrogen for reinjection at the Habshan onshore oilfield, and the company also supplies gaseous nitrogen to the Borouge petrochemicals complex in Ruwais from an onsite facility. Elixier is planning to increase its deliveries to Borouge in the coming years.

Gasco tendered for a new acid flare gas system as part of a slew of projects at its Habshan gas processing and distribution hub. The second lowest bid was submitted by Pakistan’s Descon at $39m.

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