Chiyoda/Foster Wheeler close on LNG

27 September 2002

Japan's Chiyoda Corporationwith Foster Wheeler Corporationof the US is soon expected to be awarded a contract for the third-train expansion of the liquefied natural gas (LNG) plant at Sur. The team, which built the site's first two trains for Oman LNG, is conducting a pricing exercise with contractors for the main civil and equipment installation packages for the proposed $650 million-700 million expansion (MEED 12:7:02; 7:6:02).

The engineering, procurement and construction (EPC) contract involves building a third train at Sur with the capacity to produce 3.2 million tonnes a year (t/y) of LNG. Foster Wheeler has already completed the front-end engineering and design (FEED) work for the scheme.

Spain's Union Fenosahas taken a 20 per cent stake in the project and plans to take 50 per cent of the train's output for sale in its domestic market. The government, which is expected to meet 50 per cent of the construction cost, is negotiating with other investors and long-term offtakers in Europe and Asia for the train's remaining output. Oman LNG, which already markets 6.4 million t/y of LNG from Sur, is also expected to take a 20 per cent shareholding in the project.

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