Firms line up for Abu Dhabi nitrogen pipeline deal

17 November 2009

Engineering companies value contract at up to $150m

Four international engineering firms have submitted final bids for a contract to build a major nitrogen pipeline in Abu Dhabi.

Lebanon’s Contracting & Trading, UAE-based Dodsal, India’s Punj Lloyd and Australia’s Complete Engineering all submitted cost estimates for the deal, which they value at up to $150m, by the 16 November deadline.

The contractors expect an award within “weeks or even days”, says the business development manager of one firm bidding for the deal.

State energy giant Abu Dhabi National Oil Company (Adnoc) and German engineering firm Linde will award the contract under their joint venture Adnoc Linde Industrial Gases (Elixier).

The engineering, procurement and construction (EPC) contract covers the construction of a 45-kilometre, 48-inch-diameter pipeline linking Mirfa, west of Abu Dhabi, with the Habshan oil field.

The pipeline will carry nitrogen produced at Elixier’s production facilities at Mirfa to Habshan. Adnoc will then inject it into the oil field to maintain reservoir pressure.The nitrogen will replace the natural gas that Adnoc currently uses to maintain pressure.

Elixier has awarded about $750m worth of contracts for the scheme, including deals to build two air separation units at Mirfa and a third at Ruwais. The units split air into oxygen and nitrogen for use as industrial gases.

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