The local Galfar Engineering & Contracting has won a $110m contract to build a gas gathering system as part of the Khazzan tight gas project in Oman.

The engineering, procurement and construction (EPC) contract was awarded by the UK’s BP, which is the operator of the $16bn gas development project in the north of the sultanate.

In a filing to the Muscat Securities Market, Galfar said the contract involves construction of duplex stainless steel (DSS) pipelines, including main headers, sub-headers, flow lines and above-ground installations. The EPC contract is expected to take 40 months.

The Khazzan tight gas scheme, located at Block 61 in north-central Oman, will have the capacity to produce 1.2 billion cubic feet a day (cf/d) – increasing the sultanate’s gas capacity by about a third.