Two compete to build Salalah LPG plant

26 May 2015

Companies vie for main contract after completing design study for southern Oman scheme

  • Both companies working on design study
  • Project to extract liquefied petroleum gas from southern gas network
  • Targeted for completion in 2019

Two companies are set to compete for the engineering, procurement and construction (EPC) contract on the proposed Salalah liquefied petroleum gas (LPG) in southern Oman.

The front-end engineering and design (feed) study is being carried out by US-based CB&I and the UK’s Petrofac. The two groups will submit proposals for the main contract after the feed is approved.

“The two companies have been awarded the feed contract and now OGC is evaluating the design,” a spokesman from OGC told MEED.

“Once the final design is approved, the two companies will be competing for the EPC stage,” he added.

The project is being developed with the aim of recovering butane, propane and condensates from the gas system in the south of the country.

Abdulaziz al-Mujaibi, acting CEO of OGC, was quoted in the Oman Daily Observer as saying the project would be completed in 2019.

OGC is 100 per cent owned by Oman Oil Company (OOC), which is wholly owned by the government of Oman.

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