In announcing the launch of Pearl GTL, Shell declined to say how much the project would now cost. Rising material and construction costs have seen the price tag of the project surge from the original $6,000 million to at least $10,000 million. The sharp increase led to speculation that Shell may defer or even cancel the project. Following the final investment decision, a host of contract awards were imminent, including the three largest engineering, procurement and construction (EPC) packages.For the C2 package, covering eight air separation units, Germany’s Linde has been selected for the estimated
$800 million contract. For C4, the 1,600 million-cubic-feet-a-day feed gas processing facility, Japan’s Chiyoda Corporation is in line for the estimated $1,700 million contract. Finally, a Japanese/South Korean team of Toyo Engineering Corporation with Hyundai Engineering & Construction Company has been selected for the construction of a liquid processing unit , which is estimated to cost an estimated $1,400 million (MEED 14:7:06). Shell has already awarded a number of contracts including the site preparation contract, the material offloading facility and the synthesis core, infrastructure and utility package, which is being carried out by a joint venture of Japan’s JGC Corporation and the US’ Kellogg Brown & Root on an engineering, procurement and construction management (EPCM) basis.