Dubai’s Emirates National Oil Company (Enoc) is preparing to carry out the second phase of its Falcon jet fuel pipeline and storage terminal as construction of the first phase approaches completion.

The first phase, which is being built by India’s Punj Lloyd, comprises an oil terminal in Jebel Ali port with 60 kilometres of pipeline connecting the terminal to Dubai International Airport and Al-Maktoum International Airport.

“Right now they are finishing phase one and I think they will start activities on pre-qualification for phase two soon,” says an industry source familiar with the project.

The engineering, procurement and construction (EPC) contract could be tendered in the second half of the year if prequalification gets underway in the coming months.

Another source says the tender of phase two could be built in tandem with the expansion of the Jebel Ali condensate refinery, which is also owned by Enoc.

Earlier this year, US-based KBR won the contract to carry out the front-end engineering & design (feed) phase of the refinery expansion.

Enoc is planning to float the EPC contract for the project later in 2014 and has started the prequalification process for the tender, according to sources.

“Until the refinery expansion moves they are not going to start on phase two of the Falcon project,” says the source.

Punj Lloyd was awarded the estimated $130m EPC contract for the first phase of the Falcon project in the second quarter of 2012. The oil terminal facilities will have a storage capacity of 141,000 cubic metres with a tanker truck loading system connected to oil tankers berths and other facilities. The terminal is expected to handle other petroleum products in the future.

It is expected to be completed by the end of the second quarter of 2014.