LG bids low for KNPC contract

27 September 2002

South Korea's LG Engineering & Construction submitted a low bid by the mid-September deadline for a contract to revamp the atmospheric residue desulphurisation (ARDS) unit at the Mina Abdullah refinery (MEED 30:8:02; 2:8:02).

Seven international companies were prequalified to price the engineering, procurement and construction (EPC) contract, but only two submitted bids. LG's offer of KD 41.9 million ($135 million) is some 9.5 per cent lower than the next price of KD 45.9 million ($148 million) offered by Japan's Chiyoda Corporation.

The 12-14-month contract calls for increasing the capacity of the unit to 84,000 barrels a day (b/d) from 66,000 b/d. The front-end engineering and design (FEED) package was carried out by the US' Chevron, which has also provided the catalytic replacement technology. The client is Kuwait National Petroleum Company.

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