Options placed for AKG-2 work

07 October 2005
Two engineering, procurement and construction (EPC) packages awarded on 22 September for the RasGas III project are understood to contain options for the successful bidders - a joint venture of Japan's Chiyoda Corporationand Paris-based Technip, and Jebel Ali-based J Ray McDermott Middle East- to carry out the main EPC packages on phase 2 of the Al-Khaleej gas development (AKG-2) scheme. Ras Laffan Liquefied Natural Gas Company (RasGas)is responsible for building and operating the AKG development, for which the first phase will be commissioned in the last quarter of this year (MEED 23:9:05).

The decision to include an option for AKG-2 in RasGas's trains 6 and 7 onshore and offshore contracts means that the second phase of the upstream gas development of the North field can begin as soon as the project is sanctioned by the shareholders. The front-end engineering and design (FEED) package for phase 2 commenced in the second quarter.

A similar approach of including an AKG option in a RasGas liquefied natural gas (LNG) contract was adopted on the offshore and onshore contracts relating to RasGas trains 3 and 4. AKG-2 is expected to be similar in size to phase 1, which will produce just under 800 million cubic feet a day of sales gas to be supplied to industries and utilities at Ras Laffan Industrial City.

The client on AKG-1 is ExxonMobil Middle East Gas Marketing, part of the US' ExxonMobilCorporation, which signed the development and production sharing agreement for the project with Qatar Petroleumin 2000 (MEED 4:4:03). Even without the AKG-2 options, the contracts awarded for trains 6 and 7 are among the largest ever placed in Qatar. The Chiyoda/Technip onshore contract is valued at about $4,000 million and McDermott's offshore work $450 million.

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