Chiyoda/Technip bid low for Qatargas II trains

06 December 2004
The consortium comprising Japan's Chiyoda Corporationand Paris-based Technip is the frontrunner to take the engineering, procurement and construction (EPC) contract for the train package on the Qatar Liquefied Gas Company II (Qatargas II)integrated project, following the opening of commercial bids by the client. Project sources said in late November that the Chiyoda/Technip group was low bidder by a sizeable margin from the only other bidding group - Japan's JGC Corporationwith the US' Kellogg Brown & Root(MEED 12:11:04).

The contract, valued at up to $2,000 million, is expected to be awarded by the end of December. Companies priced the Ras Laffan work on the basis of building train 1, with train 2 as an option. Each train will have capacity of 7.8 million tonnes a year (t/y).

Qatargas II has also opened commercial bids for the main upstream EPC package in the North field. Three companies are competing for the estimated $600 million contract. They are Abu Dhabi's National Petroleum Construction Company, Italy's Saipemand Jebel Ali-based J Ray McDermott Middle East.

The two EPC packages will be the last major awards on the Qatargas II project, which involves the delivery of 15.6 million t/y of liquefied natural gas (LNG) into the UK, starting in late 2007. Japan's Ishikawajima-Harima Heavy Industries (IHI)has already been awarded the $160 million tanks package at Ras Laffan and the US' Chicago Bridge & Iron (CB&I), the estimated $725 million EPC contract to build the gas receiving terminal in Wales.

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