STX wins Iraq gas-processing deal

20 January 2014

New gas-processing plant planned for Gharraf oil field in Iraq

South Korea’s STX Heavy Industries has been awarded a $99.5m engineering, procurement and construction (EPC) contract to build a gas-processing plant at the Gharraf oil field in the south of Iraq.

STX submitted its price for the gas plant in August, beating rival proposals from India’s Punj Lloyd and Switzerland’s ABB, according to sources close to the project.

Malaysia’s Petronas, which is leading the development of the field, received technical proposals for the gas plant in May 2013.

The scheme, known as the gas-to-power project, covers the construction of two 23 million cubic feet a day (cf/d) plants to process associated gas from the field to produce feedstock for a captive power plant.

This is STX’s second contract of 2014, after securing a $449m deal on 6 January to build 500 kilometres of pipelines at the Akkas gas field in the west of Iraq.

Petronas is developing the field in consortium with Japan Petroleum Exploration Company and state-owned North Oil Company, which agreed to raise production capacity to 230,000 barrels a day (b/d) by 2017.

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