Middle East contracts awarded: March 2016

10 April 2016

44 contracts totalling $12,834m were awarded in March 2016

A total of 44 contracts were awarded in the Mena region with a value of $12.8bn for March 2016.

Iran rail tops the list with the High Speed Railway award to China National Transportation Equipment & Engineering Co. from Iran Railways for the 930 km railway track from Tehran to Mashhad.

The second largest award went to the low bidder for the $2.9bn contract to build Kuwait National Petroleum Company’s (KNPC’s) planned liquefied natural gas (LNG) import terminal.

A $1bn contract was awarded for the Cairo Metro Network Line 3 - Phase 3 El-Thawra Line Civil Work by the Egyptian National Authority for Tunnels.

Saudi Arabia and the UAE remain hotspots for the construction industry with a value of awards totalling $1.5bn and $1.3bn respectively.

South Korean team wins Kuwait LNG terminal deal

A consortium of South Korea’s Hyundai Engineering and Hyundai Engineering & Construction (E&C) has been awarded the $2.9bn contract to build Kuwait National Petroleum Company’s (KNPC’s) planned liquefied natural gas (LNG) import terminal.

Korea Gas Corporation and Hyundai Motors are also reported to be working with the consortium.

MEED reported in February that the Hyundai team was the lowest bidder.

According to KNPC’s plans, the terminal will have a capacity of 1.5 trillion BTUs a day and will include two berths for the simultaneous unloading of large LNG carriers.

The terminal will also include four full containment LNG tanks, each with a working capacity of 225,500 cubic metres.


SNC Lavalin awarded $800m gas contract

  • SNC Lavalin was lowest bidder on shale gas project
  • Other bidders were JGC and Larsen & Toubro

Canada’s SNC Lavalin was awarded the $800m engineering, procurement and construction (EPC) contract, which is understood to be on Saudi Aramco’s System B shale gas project.

The contract involves developing infrastructure and processing facilities for a gas field in the Middle East but did disclose specific information on the project.

Industry sources told MEED that SNC Lavalin had been selected for the System B shale gas project in northern Saudi Arabia after submitting the lowest-priced EPC bid.

Three companies submitted bids on the project in late September 2015. The other two companies were Japan’s JGC Corporation and Indian group Larsen & Toubro.

The project will expand on the System A phase of the project that was awarded to JGC during the third quarter of 2016.

The System A tender had an initial capacity of 50 million cubic feet a day (cf/d) of gas. However, a Reuters report citing industry sources claims this has been increased to 66 million cf/d.

With System B Aramco will establish the capacity to produce 200 million cf/d of gas in Turaif to supply a power plant at the nearby Waad al-Shamal phosphate mining development.

The gas from System B will be sent to the industrial phophates city through a 70-kilometre pipeline. Industrial support facilities will also be constructed.

All the surface facilities are also expected to be skid-mounted, meaning they can be transferred elsewhere when the reservoirs have depleted.


Ansaldo wins Oman IPP turbine contracts

  • First power from the 1,509MW Ibri plant is due to come online in April 2018

Italy’s Ansaldo has been awarded two contracts worth a total of about €600m ($669.7m) to provide turbines for the Ibri/Sohar 3 independent power project (IPP) in Oman.

For each of the two plants, Ansaldo will provide four gas turbines, four heat recovery steam generators , two steam turbines and six turbo generators to China’s Sepco 3, which is the EPC contractor for both plants.

MEED recently reported that a consortium led by Japan’s Mitsui and Saudi Arabia’s Acwa Power had signed the power purchase agreement (PPA) for the 3,150MW Ibri/Sohar 3 IPP.

The team signed the PPA on 1 March.

Read previous contract awards.

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