US contracting giant KBR has landed a prized contract from Abu Dhabi National Oil company (Adnoc) for the project management consultancy (PMC) work on its Fujairah liquefied natural gas export facility in the United Arab Emirates.
The workscope for the key consultancy contract is set to include the project’s front-end engineering and design (FEED) phase and potentially stretch into its engineering, procurement and construction (EPC) phase at a later stage.
Award of the PMC contract to KBR was by two people familiar with the development. Up to four contenders were in the frame for the Fujairah LNG PMC contract.
KBR is said to have beaten the UK’s Wood and Penspen and Australia’s Worley, the other key bidders, in the tender process.
The PMC contract follows an earlier award for the FEED contract itself, made to McDermott International of the US for the Fujairah LNG terminal.
The contract to McDermott was reported by Upstream and subsequently confirmed by Adnoc. The Emirati state-owned giant recently announced plans for a two-train, 9.6 million tpa LNG export facility at Fujairah to cater to several gas markets around the world.
Abu Dhabi’s LNG ambitions are part of its drive to become a key gas exporter in the long term and to reduce UAE’s dependence on imported Qatari gas.
The nation aims to emerge as a key LNG exporter on the back of several gas-focused upstream developments in the emirate, including the multi-billion Hail & Ghasha sour gas scheme.
Adnoc said in a social media post that its “new, carbon-efficient LNG plant in Fujairah is moving to the design stage, with McDermott International Ltd appointed as the design contractor.”
Adnoc said the plant is “set to become one of the world’s lowest carbon intensity LNG production facilities through incorporating new technologies and running on clean power”.
The FEED award is “expected to be followed by the award of an EPC contract in 2023”, the company added.
The company is separately progressing with a revised FEED study on the Hail & Ghasha sour gas development that is likely to be worth billions of dollars and would significantly ramp up the emirate’s gas production capability.
The UAE consumes about 1.8 billion cubic feet per day of Qatari gas via the Dolphin pipeline and also has LNG purchase agreements with its neighbor.
The Fujairah LNG terminal could catapult UAE forward to become a major regional LNG exporter, thus competing with its neighbor Qatar and reducing its dependence on imports.
While the capital expenditure for the LNG facility could not be confirmed, industry sources have said it could be worth billions of dollars.
The Fujairah LNG export facility will include process facilities, flare, and utilities. LNG storage tanks, an export jetty — with an option for bunkering — and other associated facilities are also likely to be involved.
Adnoc LNG, a subsidiary of Adnoc, already produces about 6 million tpa of LNG from its facilities on Das Island off the coast of Abu Dhabi.
The company is owned by Adnoc with a 70 percent stake, with Mitsui holding 15 percent, BP 10 percent, and TotalEnergies 5 percent.
For more information visit www.kbr.com
