The lump-sum turnkey (LSTK) engineering, procurement and construction (EPC) contract, worth in excess of $2,000 million, covers the construction of the main liquefaction plant at Bal Haf, which will comprise two liquefied natural gas (LNG) trains with combined capacity of 6.7 million tonnes a year (t/y). The start-up of train 1 is due at the end of 2008 and train 2 will come on stream by mid-2009.

An award is also imminent on the EPC contract covering the 38-inch, 320-kilometre pipeline linking the terminal to block 18 in the Marib region, from where feedstock gas will be sourced. The three bidders are France's AMEC Spie Capag, with A Hak Pijpleidingenof the Netherlands, Technip, with Turkey's Tekfen,and Athens-based Consolidated Contractors International Company (CCC),with Italy's Saipem. The linepipe will be supplied by Japan's Sumitomo Corporation.

The award of the EPC contracts follows the final investment decision taken by the project's shareholders - France's Total, state-owned Yemen Gas Company, the US' Hunt Oil Companyand SK Corporationand Hyundai Corporation, both of South Korea - in late August. Korea Gas Corporation (Kogas), which has an offtake agreement for 2 million t/y, will later acquire a 6 per cent stake. The other offtakers are Belgium's Suez Energy Internationaland Total. Citigroupis the financial adviser (MEED 2:9:05).