Qatar Petroleum (QP) plans to issue a $300m construction award to the local Galfar al-Misnad Engineering & Contracting for gas work at its Fahahil stripping plant in Dukhan.

The engineering, procurement installation and construction contract covers plans to set up two glycol regeneration trains at the Dukhan plant to replace existing facilities.

The plant was originally created in 1974 to recover raw natural gas liquids (NGLs) from associated gas.

QP received at least five bids for the contract. The companies competing for the award include the Dutch-based Atlas Group, Galfar al-Misnad Engineering & Contracting, Bahrain’s Panorama Engineering, the local Black Cat Engineering & Construction and the UK’s Energy and Technical Services.

According to a Doha-based executive close to the project, Galfar al-Misnad is the frontrunner to win the contract.

“QP is taking its time but Galfar is expected to receive the award by the end of October,” says the source.

Australia’s WorleyParsons completed the front-end engineering and design (Feed) contract for the project in the second quarter.

In February 2008, QP awarded a $95m contract to Black Cat to install a smokeless flare system at its Fahahil gas-stripping plant.

QP is now upgrading ageing facilities across the country.

In June 2008, it reviewed the future of its two oldest natural gas liquid (NGL) plants at Mesaieed, following the decline in oil production at its onshore field at Dukhan and two offshore fields: Bul Hanine and Maydan Mahzam (MEED 13:6:08).

QP is evaluating whether it is profitable to continue operating its NGL 1 and 2 plants, considering the drop in crude output and associated gas supply from the fields.

The facilities, which were installed in 1980, were upgraded and revamped in 2006, but are becoming outdated.