Technip frontrunner for Asab gas contract

28 October 2009

Four firms bid for engineering, procurement and construction compressor station deal

France’s Technip is the frontrunner to secure a deal worth more than $400m to build a new gas compressor station at Asab in the south of Abu Dhabi, according to contractors who bid for the deal.

On 6 October, four international firms bid for the engineering, procurement and construction (EPC) contract (MEED 7:10:09).

According to sources close to the firms, state gas developer Abu Dhabi Gas Industries Company (Gasco), the client on the deal, opened the bids on 12 October and has recommended Technip to Abu Dhabi’s national oil company.

State energy giant Abu Dhabi National Oil Company (Adnoc) and Abu Dhabi’s Supreme Petroleum Council have to approve Gasco’s recommendation of Technip before the French contractor can formally receive the award.

India’s Dodsal submitted the lowest price for the deal, of $340-350m. However, Gasco decided not to open its bid, according to contractors with knowledge of the bid round. The contractors say Technip has submitted the second lowest price of more than $400m.

The winning contractor will build a booster station, Asab 3, which will allow existing facilities at Asab to process and distribute more gas. The winner will also modify two existing gas-handling units, Asab 0 and Asab 1, and build a natural gas pipeline.

The $400m scheme is part of Abu Dhabi’s wider $1bn Asab, Bab, Bu Hasa, Ruwais (ABBR) scheme to increase the emirate’s gas processing and distribution capacity by 150 million cubic feet a day (cf/d).

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