Athens-based Consolidated Contractors Company (CCC) has emerged as the frontrunner for the contract to build the sulphur granulation and handling facilities on the Shah Gas Development in Abu Dhabi.
Sources close to the project say CCC’s bid is between $500m-$550m.The second-lowest bid is about $575m, the third-lowest bid is about $590m. CCC declined to comment on pricing.
The engineering, procurement and construction (EPC) contract is expected be awarded by project owners Abu Dhabi National Oil Company (Adnoc) and US-based Occidental by the end of March. The project is part of the Shah gas field development, which will increase Adnoc’s gas production by 1 billion cubic feet a day (cf/d), as the national oil company is seeking to boost its total production to 6 billion cf/d from its current 4.5 billion cf/d.
“It is the last outstanding package and they would very much like to close it,” says one source.
Work is expected to be completed by the second quarter of 2014.
Other groups that submitted bids for the contract are:
- Daelim (South Korea)
- GS Engineering & Construction (South Korea)
- Hyundai (South Korea)
- Punj Lloyd (India)
- Saipem (Italy)
- Samsung Engineering (South Korea)
- Tecnimont (Italy)
- Al-Jaber Group (local)/Techint Group (France)
The contract covers the construction of sulphur granulation facilities with a capacity of about 7 million tonnes a year (t/y) at the Shah field, located 190 kilometres south of Abu Dhabi city. The scope of the project also includes liquid sulphur storage tanks and solid sulphur granule storage facilities, conveying systems and a marine terminal.
The project is linked with the first phase of the Union Railway scheme. The 264km rail link will deliver solid sulphur from the Shah facilities to Habshan and Ruwais. Plans to construct a pipeline to transport the sulphur in liquid form were abandoned by Adnoc in 2010.