- Four months since commercial bids were submitted
- Samsung C&T still frontrunner for main package
- Possibility of retender to reduce price of offers
Bidders on the main package of the liquefied natural gas (LNG) terminal in Fujairah, UAE, are still awaiting an award over four months after commercial proposals were submitted.
Three contractors bid for the largest engineering, procurement and construction (EPC) package tendered by Emirates LNG, which is overseeing the estimated $2bn-$3bn scheme.
South Koreas Samsung C&T emerged as the frontrunner to win the package after submitting the lowest commercial bid ahead of Italian groups Saipem and Techint, according to sources familiar with the project.
Samsung C&T has been in direct negotiations with Emirates LNG and is still likely to win the contract.
However, according to one source, there is a chance that Emirates LNG will retender the package in an attempt to get lower-priced offers.
The bidders received a letter from Emirates LNG earlier in 2015 asking them to take into account the fall in oil prices when submitting offers.
The project has been delayed a long time but it is not likely to be cancelled as it strategically important for the UAE to increase gas supplies, says an industry source.
The main package covers the construction of a 9 million-tonne-a-year (t/y) regasification terminal and associated facilities.
The project was retendered in 2014 when Emirates LNG decided to change the scope of the facilities and scrapped plans to build a floating terminal as the first phase of scheme.
Commercial proposals have also been submitted for the second package to build four gas storage tanks, each with a capacity of 200,000 cubic metres, and associated facilities. Companies thought to be in the running from the technical bid stage include Frances Entrepose Contracting, and Japanese groups IHI Corporation and Mitsubishi Heavy Industries.
Emirates LNG, a joint venture of Abu Dhabis state-owned International Petroleum Investment Company (Ipic) and Mubadala Petroleum, plans to increase LNG import capacity by a further 6 million t/y for the projects second phase.
GCC Projects Market Report 2015
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The outlook for the projects market in the GCC is uncertain. Oil prices have fallen by half since June 2014, putting increased pressure on government finances. This has led to a review of spending priorities across all the GCC markets.
As a consequence there is huge uncertainty for any businesses operating in the regional projects market.
MEEDs GCC Projects Market Report 2015 provides clarity on the outlook for projects and helps you to understand the drivers of projects spending activity in each of the GCC markets.
The report provides a comprehensive snapshot of the GCC projects market, helping you position your company for the upcoming opportunities and mitigating risk and challenges in the coming months.
GCC Projects Market Report 2015 provides:
- Future Project Forecast: Identify key opportunities across all sectors by gaining an understanding of future project spend
- Top Contractor and Client Activity Review: Increase your market share by gaining insight into the industry leaders by sector and their current and planned project activity
- Market and sector-based executive summaries: Plan your business development strategy by gaining an immediate insight on the market
- Government Policy and Strategic Priority: Mitigate risk and identify challenges by understanding the major drivers behind the plans
The report focuses on quantifying the size of the market and the individual sectors that comprise it, as well as supplying a forecast for the future direction of the market. It also looks at the recent changes in government in Saudi Arabia and considers how the increased security concerns will shape government spending priorities.
Stay up-to- date with regional trends and access exclusive data, research and analysis in presentation-ready tables, graphs, charts and maps.