The Bahrain National Gas Company (Banagas) has awarded Japan’s JGC Corporation the engineering, procurement and construction (EPC) contract for a gas compressor station.

The Japanese contractor beat rivals for the contract with a bid believed to be just under $50m. This figure is way down on the initial estimate of $300m after Banagas massively scaled back the scope of works on the scheme.

“JGC’s price was just too low for the other contractors to compete with,” a source familiar with the project says. “Even the [South] Koreans would have struggled to compete with that kind of figure.”

The gas compressor will be constructed at the company’s complex in Sitra and will have a capacity of 65 million cubic feet a day (cf/d) when completed. The EPC contract will also include the front-end engineering and design (feed) (MEED 28:1:11).

The mandate for JGC includes the design of the gas compressor, along with a gas turbine driver, a series of pipelines, associated gas gathering line, power supply and all connected process equipment and utilities.

The project has been scaled back from the initial plans, which involved the construction of seven compressors to boost the Banagas plant’s existing capacity of 280 million cf/d to 530 million cf/d by 2020.