The Bahrain National Gas Company (Banagas) has invited contractors to prequalify for the engineering, procurement and construction (EPC) contract for a gas compressor station contract at its complex in Sitra.

A source tells MEED that Banagas has sent out the solicitation of interest (SOI) to interested parties and that tenders will be issued in January. The compressor will have a capacity of 65 million cubic feet-a-day (cf/d) when completed.

Banagas ownership
Bahrain government 75%
Arab Petroleum Investment Corporation 12.50%
Chevron Bahrain 12.50%
Source: Banagas 

“This project is smaller in scope than the initial $1bn complex planned by Banagas,” says the source. “However, I think it will still be in the $250m-350m range because when you construct these plants you still need to put in infrastructure such as utilities in place.”

The source adds that the successful contractors should have until around mid-March to submit proposals with the winner being announced in mid-May.

“I am confident that work will start before the end of June,” the source says.

The contract will also be unusual because the front-end engineering and design (Feed) will be included within the EPC contract. Foster Wheeler carried out the initial feasibility studies for the project.

“What you might see is EPC contractors subcontracting the design work out to the major engineering companies on this project,” the source says. “So I wouldn’t be surprised to see consortiums being formed to bid.”  

The mandate for the winning bidder will include the design of the gas compressor 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 that would boost the Banagas plant’s existing capacity of 280 million cf/d to 530 million cf/d by 2020.

The scheme was put on hold in 2009 after Manama decided to compile a new masterplan aimed at overhauling its energy sector (MEED 19:6:09).