Third LNG train forges ahead

04 October 2002

Contractors are lining up to bid for key packages on the third train expansion of liquefied natural gas (LNG) facilities at Sur. The main engineering, procurement and construction contract is expected to be awarded to a team of Japan's Chiyoda Corporationand Foster Wheeler Corporation of the US. It is understood to be valued at between $600 million-650 million (MEED 27:9:02; 12:6:02). Formal signing is anticipated by the end of the year. The new LNG train will have a capacity of 3.2 million tonnes a year (t/y).

Bids are due in mid-October for the main onshore and offshore subcontracts. The offshore package entails the installation of an 800-metre-long intake pipe and a 600-metre-long outfall pipe. The diameter of each pipe will be 2.5 metres.

Contractors have also been asked to quote for a seawater intake station and outfall structures. The prospective bidders are understood to include Belgium's Six Construct, Geneva-based Archirodon Construction (Overseas), Consolidated Contractors International Company (CCC - Athens-based)and Interbetonof the Netherlands. Bids are due on 15 October.

The onshore work is broken into three packages: site preparation, civils 1 and 2 for the main LNG facilities and tankage. The prospective bidders are understood to include Galfar Engineering & Contracting, Bahwan Engineering Company, both local, and the UK/local Tarmac Alawi. Bids are due on 16 October.

The government signed a deal in May with Spain's Union Fenosafor 50 per cent of the train's output. The Spanish utility also took a 20 per cent equity stake in the venture. Oman LNG- which already produces 6.6 million t/y of LNG - along with its major foreign shareholder, the Royal Dutch/Shell Group, is expected to take a 20 per cent stake in the third train. Negotiations are understood to have reached an advanced stage with another foreign partner to take the bulk of the train's remaining output (MEED 7:6:02).

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