Prequals in for Skikda LNG reconstruction

22 October 2004
Four international companies and groups have applied for prequalification for the engineering, procurement and construction (EPC) contract to build a 4 million-tonne-a-year (t/y) liquefied natural gas (LNG) train at Skikda. Reflecting the fast-track nature of the $600 million-700 million project, the client, state energy company Sonatrach, is expected to finalise the prequalification list by the end of October and issue invitation to bid (ITB) documents to the prequalifiers shortly after.

The applicants for prequalification are: the US' Fluor Daniel, with Chiyoda Corporationof Japan and South Korea's SK Engineering & Construction; the US' Kellogg Brown & Root, with Japan's JGC Corporation; Paris-based Technipwith the US' Foster Wheeler; and US-based Bechtel.

Under the proposed bidding schedule, technical bids will be submitted by year-end, with commercial bids invited in January. Sonatrach plans to award the contract by the end of the first quarter next year.

The scheme involves the construction of a single LNG train to replace three trains destroyed by a series of explosions at the Skikda complex in January. The project will be financed mainly by the $500 million insurance pay-out Sonatrach received following the blasts, with the remaining costs funded by the company.

Algeria had LNG output of about 20 million t/y prior to the incident (MEED 10:9:04).

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