Four companies submit proposals for second of two major packages at Fujairah gas terminal
UAE-based Emirates LNG has received technical proposals on a tender to build storage tanks at its planned liquefied natural gas (LNG) terminal in Fujairah.
The storage tanks are the second major engineering, procurement and construction (EPC) package at the terminal on the east coast of the UAE.
The scope includes four gas storage tanks, each with a capacity of 200,000 cubic metres of gas and associated facilities.
According to a source familiar with the project, companies submitting technical bids include:
- CB&I Lummus (US)
- Entrepose Contracting (France)
- IHI Corporation (Japan)
- Mitsubishi Heavy Industries (Japan)
Bidding companies are expected to submit commercial proposals in December for the tender.
Contractors have already submitted technical bids for the first of the two EPC packages, with commercial proposals expected at the end of November.
The first package is for the construction of a 9 million tonne-a-year (t/y) LNG regasification terminal and has an estimated value of $900m. The bidding companies are thought to be:
The contract is expected to be awarded in the first quarter of 2015, according to a source from Emirates LNG.
Emirates LNG, a joint venture of Abu Dhabis state-owned International Petroleum Investment Company (Ipic) and Mubadala Petroleum, plans to increase LNG import capacity by a further 6 million t/y for the projects second phase.
Plans to increase the capacity of the terminal over the long term indicate the UAE government will require more LNG imports to plug the deficit in gas demand over the next decade.
Emirates LNG initially proposed a floating facility for the first phase of the project, but this was scrapped in favour of a fully land-based terminal.
The front-end engineering and design (feed) phase was carried out by Frances Technip, with the projects feasibility study completed by US-based Poten & Partners.
Once finished, the terminal will be the Middle Easts first land-based LNG regasification facility and the largest in the region.
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