Award nears on Qatargas II tanks package

24 September 2004
The award of the first engineering, procurement and construction (EPC) contract, covering the tankage package at Ras Laffan, is imminent on the Qatargas II project. Four international groups and companies are competing for the contract, which is expected to be worth about $150 million. Two groups are also preparing to submit commercial bids in early November for the gas liquefaction plant contract, which is the biggest on the estimated $11,000 million integrated development. The project, which is being implemented by Qatar Liquefied Gas Company II (Qatargas II), calls for the delivery of 15.6 million tonnes a year (t/y) of liquefied natural gas (LNG) into the UK starting in late 2007 (MEED 16:7:04).

The bidders for the tankage package are: the US' Chicago Bridge & Iron (CB&I); Japan's MitsubishiHeavy Industries (MHI), with France's Vinci; Japan's Ishikawajima Harima Heavy Industries (IHI); and Technigaz, also of France.

Bidders were asked to submit a base bid, calling for the construction of two tanks, plus a range of options, which in total add up to five tanks. However, it is expected that the contract award will cover three tanks each with capacity of 140,000-160,000 cubic metres.

For the train contract, commercial bids are due on 7 November from the two prequalified bidders - Japan's Chiyoda Corporation, with Paris-based Technip; and Japan's JGC Corporation, with US-based Kellogg Brown & Root. The tender covers construction of train 1, with train 2 as an option. Both trains will have capacity of 7.8 million t/y and use AP-X technology provided by the US' Air Products. Chiyoda carried out the front-end engineering and design (FEED).

One other major EPC contract is to be tendered on the project at Ras Laffan. It will cover the sulphur handling facilities, for which the US' Washington Groupis carrying out the FEED.

Tendering on Qatar's other major LNG project - trains 6 and 7 for Ras Laffan Liquefied Natural Gas Company II (RasGas II)- is expected to kick off in the fourth quarter, with the release of the first set of bid documents for the plant package, for which Chiyoda is also the FEED contractor. Trains 6 and 7, similar in size to the Qatargas II facilities, will supply LNG to the US market.

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