Mustang takes Qafac FEED

19 November 2004
The US' Mustang Tampais understood to have been appointed for the front-end engineering and design (FEED) package on the estimated $600 million expansion project planned by Qatar Fuel Additives Company (Qafac) at Mesaieed. The FEED, expected to take about six months to complete, centres on a new methanol train, which at 6,750 tonnes a day will be one of the world's biggest.

Technology for the train will be provided by Germany's Lurgi. The engineering, procurement and construction (EPC) package is expected to be tendered in the second quarter of 2005. The expansion is due for completion in late 2007/early 2008.

Preparations are also advancing for the project's financing package. The preliminary information memorandum (PIM) for the $300 million-400 million debt package is expected to be released to banks in the first quarter. Societe Generaleand Norton Roseare the respective financial and legal advisers.

Qafac's shareholders are Qatar Petroleum (50 per cent), Taiwan's China Petroleum Corporation(20 per cent), Taiwan's Lee Chang Yung Chemical Industry Corporation(15 per cent) and Canada's International Octane(15 per cent - MEED 16:4:04).

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