Bids in for Qatargas II UK terminal

25 June 2004
Evaluation of technical and unpriced commercial bids is under way for the engineering procurement and construction (EPC) contract on the Milford Haven gas receiving terminal in the UK, which will receive liquefied natural gas (LNG) from the Qatar Liquefied Gas Company II (Qatargas II)integrated project. Four companies and groups are competing for the estimated $600 million contract, the initial scope of which calls for the construction of a receiving terminal with 7.8 million t/y of capacity, with an option to expand it to 15.6 million t/y.

The bidders are: US-based CB&I; UK-based Skanska Whessoe, with MW Kellogg, also UK-based; Italy's Saipem, with US-based Foster Wheeler; and the UK's AMEC, with France's Sofregaz. Commercial prices are due to go in on 11 August. Kellogg has prepared the front-end engineering and design (FEED) package for the terminal.

Bidding is also under way for the EPC contract covering the two new trains at Ras Laffan on the Qatargas II scheme. Prospective bidders are: Japan's Chiyoda Corporation, with Paris-based Technip; and Japan's JGC Corporation, with US-based Kellogg Brown & Root. The contract covers construction of the 7.8 million-t/y train 1, with train 2, of similar size, as an option (MEED 30:4:04).

The $11,000 million Qatargas II project calls for the delivery of 15.6 million t/y of LNG into the UK, with first deliveries starting in late 2007. Qatargas II is a 70:30 joint venture between Qatar Petroleumand ExxonMobil Corporation of the US.

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