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Gasco Awards EPC Contracts for IGD Project

Source: www.gulfoilandgas.com 7/16/2009, Location: Middle East

Abu Dhabi Gas Industries Ltd. (GASCO) has confirmed the award of the contracts for Engineering, Procurement, Construction and Commissioning (EPC) works for the Integrated Gas Development (IGD) Project on Lump Sum Turn key Basis, covering the following Packages:

1. Habshan 5 Process Plant
2. Habshan 5 Utilities&Offsites (U&O)
3. Ruwais 4th NGL Train
4. Ruwais Storage Tanks

The Contract were awarded as follows:

1. Habshan 5 Process Plant: To a Joint Venture of JGC of Japan and Tecnimont of Italy fora total Agreement Price of about US$ Four Billion and seven hundred Million (Dirhams Seventeen Billion and three hundred Million.).

2. Habshan 5 U&O: To Hyundai Engineering & Construction of South Korea for a total Agreement Price of about US$ One Billion and seven hundred Million (Dirhams Six Billion and Two hundred Million.)

3. Ruwais 4th Natural Gas Liquids (NGL) Train: To a Joint Venture of Petrofac of UAE and GS Engineering of South Korea for a total Agreement Price of about US$ two Billion and one hundred Million (Dirhams Eight Billion).

4. Ruwais Storage Tanks: To CBI of USA for a total Agreement Price of US$ Five hundred and thirty three Million (Dirhams one Billion and nine hundred fifty Million)

The Letters of Award were issued to the above-mentioned Companies on 15th July 2009.

The initial Phase of the Projects execution will commence from the respective Contractors’ Home Offices and will later on move to the Sites at Habshan and Ruwais for construction activities

The Projects are scheduled for completion by 3rd Quarter 2013.

All the 4 Packages are Mega Projects in their own complexity and magnitude.

The IGD Project will be built at a new location in Habshan titled Habshan 5. There will be 4 Gas Processing Trains with total processing capacity of 2,000 MMSCFD. Of this, 1,000 Million Standard Cubic Feet Per day (MMSCFD) of Gas will be transported from Offshore field Umm Shaif via Das Island to enable ADMA-OPCO to meet their planned increase in Oil Production. The remaining 1,000 MMSCFD of Gas will comprise of a mix of Associated Gas as a result of increase in Oil Production by ADCO from 1.4 to 1.8 MM Barrels/day and Non-associated gases of high sourness from Habshan gas fields. The Habshan 5 complex will also build 4 new Sulphur Recovery Units with recovery efficiency upto 99.9%. It will reduce emission of toxic gases considerably meeting the environment standards of ADNOC.

After commissioning of these facilities the new complex in Habshan 5 will produce 900 MMSCFD of Sales Gas, 12,000 Tons/Day of NGL and 5,000 Tons/Day of Liquid Sulphur.

While the products (Propane, Butane, Paraffinic Naphtha and Sulphur) would be exported, ethane shall be transported to the nearby Petrochemical Complex as feedstock.

GASCO will direct its Contractors to maximize in these projects the local contents in terms of materials, equipment and services.

These Projects will deploy large number of workforce of labour, technicians and supervisors to the tune of about 30,000 at the peak of construction activities. Of these, about 20,000 persons will be in Habshan 5 while about 10,000 will be in Ruwais.

The IGD Project, in addition to providing Sales Gas to the consumers in the Emirate, will also provide a permanent link between offshore and on shore facilities of ADNOC Group of companies to provide operational flexibility for Oil and Gas Production.

The Front End Engineering Design (FEED) for the IGD Project was completed last year and during execution of FEED high significance was been given to HSE aspects in order to eliminate and adverse impact on the environment and the surrounding community in line with ADNOC HSE Code of Practices.

These Projects will also provide excellent opportunities to UAE Nationals for training and learning new technologies through exposure and interaction with specialists of these Engineering Companies. This will enable them to enhance their competencies and expertise in the area of Project Management and also to take on the responsibilities in Operation and Maintenance.

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