Lootah wins Abu Dhabi pipeline deals

09 July 2008

The local Lootah BC Gas has won two contracts to build and convert gas pipelines in and around Abu Dhabi city, totaling about AED145m ($40m).

The larger of the two contracts, worth about AED75m ($20.4m), covers the installation of gas distribution pipelines at Yas island.

The work involves laying 15-20 kilometres of pipes to provide gas to the planned Formula One race track on the island. It also includes pressure-reducing stations and desulphurisation facilities.

Lootah will carry out the contract in a joint venture with Abu Dhabi-based QEnergy, itself a joint venture between Lootah and Abu Dhabi’s Al-Qudra Holding. The client is local property developer Aldar.

The second deal, worth about AED70m, involves conversion of existing gas pipelines to carry liquefied petroleum gas (LPG). The contract, known as NGD-7, also calls for the connection of the LPG pipelines to local petrol stations.

The scheme is part of a plan to encourage the take-up of LPG-fuelled vehicles by making LPG filling stations more numerous.

The clients on the project are Adnoc Distribution and Abu Dhabi Gas Industries Company (Gasco).

The deadline has also been extended again to 10 August for a much larger contract to install a gas pipeline network with Abu Dhabi network itself.

Three contractors - Lebanon's Contracting & Trading (CAT), Athens-based Consolidated Contractors Company (CCC) and Egyptian Natural Gas Company - are preparing bids for the estimated $300m scheme, which is called NGD-10 (MEED 15:4:08).

The work covers the installation of more than 350km of polyethylene-lined pipes to connect residential and commercial properties to the gas network.

It also covers about 2,500 residential gas meters, the conversion of the existing bottled gas networks to natural gas, and the construction of primary and secondary pressure-reduction stations. It is part of a programme to extend the network in Abu Dhabi.

The UK's Hyder Consulting is project manager. Canada's Terasen International is the front-end engineering and design contractor (MEED 14:6:05).

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