EXCLUSIVE: Ras al-Khaimah considers revising scope of LPG terminal project

13 December 2018
Commercial bids for the project were recently submitted by contractors

Government-owned RAK Gas is considering plans to revise the scope of work of its planned liquefied petroleum gas (LPG) storage terminal project in the UAE emirate of Ras al-Khaimah.

The planned facility is designed to have the capacity to store 8,000 metric tonnes of LPG and be able to dispatch it through Roda Tankers, with a tanker loading capacity of 160 metric tonnes a day.

Commercial bids for the estimated $300m contract to build the terminal were recently submitted. “The commercial bids are being evaluated. While that happens, RAK Gas needs to see [ascertain] the feasibility of the project in the first place. Therefore, a commercial [feasibility] study is being carried out,” the source said.

“RAK Gas has to do a revaluation of the whole scope of work on the project. The scope of work is being fine-tuned,” the source added.

The firms that have bid for the project, according to MEED Projects, are:

  • Cylingas Engineering & Construction (UAE)
  • Rotary Engineering (Singapore)
  • Tata Projects (India)
  • Valentine Marine (UAE)

The bid evaluation process could be delayed if the scope of works is revised. Although the bidders will not be asked to re-submit the bids, RAK Gas is expected to have extensive negotiations with bidders to suit any potential revised requirements, the source said.

Even if the scope is revised, the client is expected to award the contract by the end of the first quarter next year.

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