Award made on Salalah LPG project

09 January 2017

UK firm had earlier completed design work on the proposed gas facility

UK-based Petrofac has been awarded a contract worth close to $600m to carry out engineering, procurement and construction (EPC) on the proposed Salalah liquefied petroleum gas (LPG) plant in southern Oman.

The 36-month lump sum contract is for the construction of the LPG unit and associated facilities, including tie-ins to existing pipeline infrastructure, together with LPG storage and jetty facilities at the Port of Salalah. It is set for completion in 2019.

The LPG plant is expected to produce 153,000 tonnes a year of propane, 115,000 tonnes of butane and 59,000 tonnes of condensate, extracted from LPG from the nearby Salalah gas field.

Petrofac and US firm CB&I, which was the other pre-qualified bidder, had earlier completed the front end engineering design (FEED) work on the gas facility.

The tendering process on Salalah LPG, which is a wholly-owned subsidiary of Oman Oil Facilities Development Company had been administered by the Oman Gas Company, which falls under state-owned Oman Oil Company.

MEED reported in September that international banks had received requests for proposals for a $750m loan on the project.


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