Adnoc LNG Awards $1bn Job To Spanish Firm
Abu Dhabi exporter Adnoc LNG has awarded Spanish contractor Tecnidas Reunidas a contract with a potential final value of just over $1 billion, the latter said September 17.
Tecnicas Reunidas (TR) said the new lumpsum contract for the design, supply and construction of a 245mn ft3/d gas treatment plant at Das Island, in Abu Dhabi, in the United Arab Emirates has been awarded to a consortium of itself and United Arab Emirates-based Arabtec-owned contractor Target Engineering and Construction. It said the contract value is $860mn and for work lasting 54 months in duration, but that there is an option to increase the work scope by an extra $150mn. The Spanish firm will lead the consortium with a 50% stake.
Adnoc LNG supplied about 5.6mn mt/yr LNG last year, of which 83% was shipped to Japan - almost all to leading Japanese customer Jera. However the LNG exporter -- which is 70%-owned by Abu Dhabi state oil producer Adnoc, with 15% 10% and 5% stakes held by respectively Mitsui, BP and Total and which has operated since the early 1980s - recently had its supply contract to Jera slashed from some 4.7mn mt/yr to 0.5mn mt/yr starting next year so needs to scout for other markets and buyers.
TR said the scope of the contract includes engineering, equipment and material supply, construction, installation, testing and commissioning of compression, drying and gas treatment units, as well as power generation and other auxiliary services. The new facilities will be used to send low pressure gas coming from the offshore gas fields in the vicinity of Das Island to Habshan, onshore UAE. Since 2015, TR has been participating in this program through the contract awarded by Adnoc Gas Processing for the construction of the gas treatment plant in Habshan. The newest contract will be TR's sixth of its kind in UAE.