Prices opened for Adgas LPG train

03 June 2003
Japan's Chiyoda Corporationis the low bidder for the new liquefied petroleum gas (LPG) train planned on Das Island following the opening of commercial bids by the client, Abu Dhabi Gas Liquefaction Company (Adgas). In a tight contest, Chiyoda has submitted a price of $485 million, some $20 million below its closest rival, Italy's Snamprogetti. The two other bidders - Japan's JGC Corporationand the UK's AMEC- have quoted about $510 million and $530 million respectively (MEED 21:3:03).

Sources close to the project say that a repricing exercise is a possibility, given that the prices are above the project's budget, estimated in the range of $350 million-400 million. The project involves the addition of a new LPG train with capacity of about 1 million tonnes a year (t/y). The new train will process some 220 million cubic feet a day of associated gas through gas compression, acid gas removal, gas drying, precooling and fractionation.

Chiyoda carried out the front-end engineering and design (FEED) package for the project. Stone & Webster, part of the US' Shaw Group, is the project management consultant.

Adgas already operates three liquefied natural gas (LNG) trains on Das, with combined production of about 5.4 million t/y. It also produces 1.7 million t/y of LPG, 535,000 t/y of pentane and 338,000 t/y of sulphur (MEED 6:9:02).

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