EXCLUSIVE: Preferred bidder selected for UAE gas project

29 August 2018
Adnoc’s second integrated gas expansion project is estimated to be worth more than $1bn

Adnoc LNG has selected a joint venture (JV) of Spain’s Tecnicas Reunidas and Abu Dhabi’s Target Engineering Construction Company as the preferred bidder for its second integrated gas development expansion project (IGD E2), according to industry sources.

“The joint venture has been selected as preferred bidder and will be nominated to Adnoc for approval,” said one source.

The IGD Expansion 2 project is estimated to be worth more than $1bn and will expand the volume of gas from Abu Dhabi’s offshore field processed at Gasco’s onshore operations at Habshan – adding 200-400 million cubic feet a day (cf/d) of capacity.

Earlier this month, MEED reported that a JV of the UAE’s National Petroleum Construction Company (NPCC) and the UK’s Petrofac had the highest In-Country Value (ICV) rating out of all the bidders for IGD E2.

Adnoc LNG was expected to consider the ICV score as well as the bid price as it decided on the contract award.

On 24 July, MEED reported that a JV of Spain’s Tecnicas Reunidas and Abu Dhabi’s Target Engineering Construction Company was the lowest bidder on the IGD E2 project.

The JV of NPCC and Petrofac submitted the second-lowest price, according to industry sources.

The ICV system rates each contractor by how much it contributes to the UAE economy. Under the system, if a company has a higher ICV score it increases its chances of winning Adnoc contract awards.

Adnoc introduced the programme in January this year to encourage the use of local goods, services and manufacturing, to increase economic diversification and stimulate growth.

The following companies submitted bids for the IGD E2 project:

  • National Petroleum Construction Company / Petrofac JV
  • CB&I / Larsen & Toubro JV
  • Worley Parsons / Archirodon / Hyundai E&C JV
  • Tecnicas Reunidas / Target Engineering JV
  • Fluor Corporation
  • Maire Tecnimont.

The project will add two booster compression trains, three dehydration trains and two amine-based fuel gas treatment units – as well as associated facilities.

The package was originally tendered in March 2015 as one of five that formed the Integrated Gas Development Expansion project. Commercial bids for the engineering, procurement and construction (EPC) contract were submitted in December 2015, but the project was subsequently put on hold and the contract never awarded.

All of the other packages that were part of the first expansion project are currently in the execution phase. Gasco completed the original $11bn IGD project in 2013.

The original IGD project allowed Gasco to transfer 1 billion cf/d of high-pressure gas from the offshore Umm Shaif field via Das Island to onshore processing facilities at Habshan and Ruwais.

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