Plans laid for Buraimi gas line

23 August 2002

Oman Gas Company (OGC)plans to issue a tender by the fourth quarter for the contract to build a 45-kilometre gas pipeline to Al-Ain, in the UAE, via the border town of Buraimi. However, the project depends on the government reaching a final agreement with Abu Dhabi-based Dolphin Energy (DEL)for the supply of an estimated 120 million cubic feet a day (cf/d) of Omani gas to be used as feedstock for the Fujairah power and desalination complex. The pipeline will tie into the Fahud-Sohar pipeline in Oman, which is under construction (MEED 19:7:02).

Austria's ILF Consulting Engineers- which is completing conceptual designs for the 24-inch pipeline - is also preparing the tender documents for the main engineering, procurement and construction (EPC) package and the procurement of the pipeline. It plans to issue a tender for the long lead items by early September.

Two potential crossing points have been identified on the border near Al-Ain. The selection is dependent on access to the main DEL gas pipeline that will service Fujairah. A short branch line will also be built to supply gas to light industries in Buraimi. ILF also completed the front-end engineering and design (FEED) work, and conceptual studies for the Fujairah pipeline (MEED 21:6:02).

A consortium of Italy's Saipemin joint venture with Athens-based Consolidated Contractors International Company (CCC)and the Paris office of Italy's Snamprogettiwith Japan's Mitsubishi Corporationis carrying out the work on the 303-kilometre-long 32-inch Sohar-Fahud link. First gas is due on 9 September, with the final handover to OGC scheduled for late October. The Al-Ain pipeline will tie in at a point located near Wadi Saa.

OGC says once it has received final approval for the project it plans to proceed with the tender for the main EPC package on a fast track basis, without prequalifying contractors or commissioning a FEED. Project costs are estimated at $60 million.

The US' Occidental Petroleum Corporationis in advanced negotiations with the Omani government to supply it with gas for DEL from its Block-9 concession. Occidental acquired in early June a 24.5 per cent stake in DEL, replacing Enron Corporation, also of the US (MEED 7:6:02).

The company has completed in-house studies for the development of Block-9, which is set to begin once an agreement has been reached with the Oil & Gas Ministry. Additional gas may also be sourced from the company's other acreage in Block-27.

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