Qatargas II tank package for IHI

15 October 2004
The first major engineering, procurement and construction (EPC) contract has been awarded on the Qatar Liquefied Gas Company II (Qatargas II)project, with Japan's Ishikawijima-Harima Heavy Industries (IHI)receiving a letter of intent for the Ras Laffan storage tanks package. The award, valued at about $160 million, covers the construction of two cryogenic storage units with an option for a third. Commercial bids for the main plant contract on the estimated $11,000 million integrated gas project are due to be submitted in the first week of November, while the tender is expected to be issued to prequalified EPC contractors in November for a new sulphur handling facility which will serve Qatargas II and the Ras Laffan Liquefied Natural Gas Company II (RasGas II)developments (MEED 24:9:04).

IHI beat off competition from France's Technigaz, the US' Chicago Bridge & Iron (CB&I) and a Japanese/French group of Mitsubishi Heavy Industriesand Vincito win the 38-month contract. The new tanks will each have capacity of 140,000 cubic metres.

Commercial bids are due on 7 November for the Ras Laffan plant contract, which covers the construction of a 7.8 million-tonne-a-year (t/y) train with an option for a second of similar size. The two bidders are: the US' Kellogg Brown & Root, with Japan's JGC Corporation; and Chiyoda Corporation, also of Japan, with Paris-based Technip.

Prequalification is drawing to a close for the estimated $150 million sulphur handling facility package, which will be managed by Qatargas II. Companies to apply for prequalification included Chiyoda, the US' Mustang Engineering, Technip, Germany's ThyssenKruppand the Washington Group, also of the US,which is the front-end engineering and design (FEED) contractor.

Qatargas II is also close to appointing an EPC contractor for its new gas receiving terminal at Milford Haven in the UK, which will take delivery of the liquefied natural gas (LNG) produced at Ras Laffan. First deliveries are due in late 2007. Qatargas II is a 70:30 joint venture between Qatar Petroleumand the US' ExxonMobil Corporation.

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