State-owned Qatargas has awarded the US’ Fluor Corporation the estimated $1bn gas recovery scheme at Ras Laffan Industrial City, which aims to minimise the loss of liquefied natural gas (LNG) through flaring, the company said in a statement.

Fluor will carry out the engineering, procurement and construction management (EPCM) for the scheme known as the “jetty boil-off project”.

Qatargas is working with state energy giant Qatar Petroleum and the country’s ministry of the environment to significantly reduce the overall levels of gas flaring and emissions at Ras Laffan.

Fluor will provide compressors and supporting utilities to enable boiled-off gas to be collected from liquefied natural gas (LNG) ships and compressed at a central facility.

The gas will then be sent to the LNG producers to be consumed as fuel or converted back into LNG. The project is expected to be completed by the end of 2013 or early 2014. When fully operational, the scheme will recover some 600,000 tonnes of LNG a year.

The company completed the front-end engineering and design (Feed) study for the project in the first half of 2009.

The project was delayed several times in 2009, with Qatargas seeking to profit from falling construction costs across the region (MEED 16:12:09).

Other companies that bid for the deal include the Foster Wheeler, KBR and Stone & Webster, all of the US, and Italy’s Tecnimont.