Gas treatment award imminent

23 November 2001

The contract to build onshore gas treatment facilities for phases 4 and 5 of the South Pars gas development scheme is expected to be awarded by the end of December. The client on the scheme is a partnership of Italy's Eniand the local Petropars, which won the contract to carry out phases 4 and 5 of the development in July 2000 (MEED 11:8:00).

It is understood that two consortia, both led by South Korean firms, are bidding for the scheme. They are Daelim Engineers & Construction Company, with the local Industrial Development & Renovation Organisation (IDRO); and Hyundai Engineering & Construction Company, with an unidentified local firm.

The onshore facilities will be located at Bandar Assaluyeh and will have the capacity to treat 56 million cubic metres a day of gas, together with an associated production of 80,000 barrels a day of condensate. In addition, the plants will treat more than 1 million tonnes of liquefied petroleum gas (LPG) a year and an equal amount of ethane, to be used as feedstock for petrochemicals. Two 105-kilometre gas pipelines will link the facilities with the South Pars field.

Both the South Korean companies are already involved in the construction of gas treatment facilities at South Pars. Hyundai Engineering & Construction is working on the estimated $600 million contract to set up onshore facilities for phases 2 and 3 of the development, which are being carried out by France's TotalFinaElfand South Korea's Hyundai Heavy Industries. Hyundai Engineering & Construction says that the first of four gas trains is planned to be commissioned in February. Completion of the plants is scheduled for the summer, but the project is running slightly behind schedule.

Daelim and IDRO are carrying out the $290 million engineering, procurement and construction (EPC) contract for the phase 1 onshore treatment facilities. The project has been delayed by several months.

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