Dodsal bids low for Habshan sulphur station

23 November 2010

Project to be awarded before end of 2010

India’s Dodsal has submitted the lowest-priced bid for an estimated $600m deal to build a new sulphur handling and processing facility at Habshan in the southwest of the emirate.

At least nine firms submitted commercial bids to Abu Dhabi Gas Industries (Gasco) on 22 November, including Dodsal and Punj Lloyd, both of India; Italy’s Saipem; and South Korea’s GS Engineering & Construction.

According to sources close to the project, Dodsal’s price came in at under $600m. In second place is South Korea’s Daelim, followed by India’s Punj Lloyd and GS Engineering & Construction, also of South Korea.

“They have to build a granulation unit, lay 150 kilometres of pipelines and just as much overhead power lines. Considering the scope of the project, it will be difficult to execute at this price,” says one source close to the scheme.

Gasco, a subsidiary of Abu Dhabi National Oil Company, hopes to award the scheme before the end of the year.

The facility will be used to form and granulate 10,000 tonnes a day (t/d) of sulphur extracted from natural gas at Adnoc’s existing gas production facilities and its new integrated gas development.

Gasco is also set to award a $600m-plus contract for a new 20,000 t/d sulphur handling terminal at Ruwais, 240km from Abu Dhabi. A consortium of Italy’s Techint and local Al-Jaber Group emerged as the lowest-priced bidder in a competitive bid round on 4 October (MEED 15:10:10).

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