Daewoo emerges as low bidder for NIOC LNG tank package

16 December 2005
Daewoo Engineering & Construction of South Korea is understood to be the low bidder for the tank package contract on the NIOC LNGproject. Three companies have priced the estimated $200 million engineering, procurement and construction (EPC) contract. The other bidders are Daelim Industrial Company, also of South Korea, and Entrepose of France (MEED 28:10:05).

'Bidders have proposed a base option, along with several variations,' says an industry source. 'Technical and commercial evaluations are over and clarifications are expected to start soon.'

The contract entails the construction of two 140,000-cubic-metre liquefied natural gas (LNG) and three 30,000-cubic-metre liquefied petroleum gas (LPG) storage tanks. A team of Paris-based Technipand Japan's JGC Corporationhas carried out the front-end engineering and design (FEED) package. The NIOC LNG project calls for the construction of a 7.5 million-tonne-a-year (t/y) complex by National Iranian Gas Export Company (NIGEC), on behalf of the client, National Iranian Oil Company (NIOC).

Bids are due to be submitted by the extended deadline of 19 December for a second EPC contract covering the tank package on the Pars LNG project. Three companies - France's Technigaz, the UK's Whessoe Oil & Gasand Daewoo - are expected to price the estimated $200 million contract. It will cover three LNG storage tanks, each with capacity of 155,000 cubic metres, and two LPG tanks each with capacity of 7,000 cubic metres at Tombak. Technip is the FEED contractor.

Pars LNG is a consortium of NIGEC and France's Total, which plans the construction of two gas liquefaction trains each with capacity of 5 million t/y. Tenders are scheduled to be issued by mid-January for the gas liquefaction and the gas treatment plant contracts, although a delay is expected (MEED 21:10:05).

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