Commercial bids are also under evaluation from two groups – a joint venture of Japan’s Chiyoda Corporationand Paris-based Technip; and Japan’s JGC Corporation, with the US’ Kellogg Brown & Root– for the onshore package. Estimated to be worth $3,000 million-3,500 million, the engineering, procurement and construction (EPC) contract focuses on the construction of trains 6 and 7 at Ras Laffan. Each train will produce 7.8 million tonnes a year of liquefied natural gas (LNG), starting in late 2008.

The scheme will be financed by a mixture of debt and equity. The client, the local/US Ras Laffan Liquefied Natural Gas Company II (RasGas II), has recently mandated a lead arranger group of 19 banks for the estimated $1,600 million commercial bank tranche, while roadshows are under way for a planned bond issue of $1,600 million-2,700 million. Royal Bank of Scotlandis acting as financial adviser (see Banking & Finance, page 23).