Petrofac wins $544m gas pipeline contract

10 November 2008
UAE-based Petrofac International has won the contract to build a major gas pipeline for Kuwait Oil Company (KOC), after submitting the lowest bid of KD147m ($544m).

Petrofac was awarded the deal ahead of South Korea's Daelim Industrial Company, Spain's TR, SK Engineering & Construction, also of South Korea, and Italy's Snamprogetti/Saipem.

The lump-sum engineering, procurement and construction contract covers the installation of a 40-inch-diameter gas pipeline between gas booster station 131 in the far north, and the state's fourth gas fractionation plant at the Mina al-Ahmadi refinery, which is under construction (MEED 6:6:08).

The pipeline will be at least 150 kilometres long. It will transport gas from Kuwait's northern fields, where production recently started.

The gas is processed at Mina al-Ahmadi before being sent to the state's power generation plants.

Petrofac has lost out on the two most recent contracts it has competed for in the state.

It narrowly missed out to Snamprogetti on two upstream contracts in Kuwait: the first for booster station 160 and the second for the second-phase effluent reinjection facilities programme (MEED 29:5:08).

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