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 Pijpleidingen
of 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 Company
and SK Corporation
and 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 International
and Total. Citigroup
is the financial adviser (MEED 2:9:05).