Deadline set for Shah sulphur handling construction deal

13 September 2009

October closing date set for engineering proposals on key export terminal deal

The joint venture partners behind the $10bn plus Shah gas development in Abu Dhabi have set an October bid deadline for a contract to build the key sulphur export handling facilities at Ruwais.

Firms prequalified to bid on the engineering, procurement, and construction (EPC) contract have been asked to submit technical bids, outlining proposed engineering works, by 28 October. Commercial bids, detailing cost structures, are due in December. The clients on the job are Abu Dhabi National Oil Company (Adnoc) and the US’ Conoco Phillips.

The contract covers the construction of liquid and solid sulphur storage facilities, a granulation system, and a ship loading system alongside terminals and berths for the ships used to export the material.

When complete the Shah gas development will produce 1 billion cubic feet a day of natural gas from the “sour” or sulphur-rich gas from the Shah field in the southwest of the emirate. The sulphur will be stripped from the gas and piped separately to Ruwais for export.

The pipeline system used to transport the sulphur is seen as extremely complex and dangerous, and the deal to build it is yet to be tendered as the US’ Fluor is currently working on its design.

Earlier in September, MEED reported that the deadline for technical bids on the main process units at Shah had been delayed by two months to November 2009 (MEED 11:9:09).

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