Contractors gear up for LPG project

12 November 2004
Bids are due to be submitted by the end of November for the engineering, procurement and construction (EPC) contract to build a liquefied petroleum gas (LPG) plant at Marib. About four international EPC contractors have been invited to bid for the estimated $100 million project, which is being developed by Marib Gas Company (MGC), a joint venture between National Yemen Gas Companyand Midgas Group- a consortium of private UAE-based investors. An award is expected in the first quarter of 2005. Construction will take about two years.

The plant will have capacity to process 500 million cubic feet a day of gas, with 70 per cent of its output earmarked for local consumption. MGC is negotiating medium-term offtake agreements with a number of overseas energy firms for the remainder. The project promoter is likely to finance the scheme on a 70:30 debt/equity basis.

The front-end engineering and design (FEED) work has been completed by a team of Belgium's Tractebel Engineeringand the UAE's Global Process Systems.

A MEED Subscription...

Subscribe or upgrade your current package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications