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 phase and potentially stretch into its engineering, procurement and construction (EPC) phase at a later stage.
The PMC contract award was made to KBR, two people familiar with the development.
Up to four contenders were in the frame for the Fujairah LNG PMC contract, Upstream has reported.
KBR is said to have pipped UK’s Wood and Penspen and Australia’s Worley, the other key bidders in the tender process, Upstream understands.
The contract to McDermott was reported by Upstream and subsequently confirmed by Adnoc.
The emirati state-owned giant recently unveiled plans to develop 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 a 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.
Neither KBR nor Adnoc are yet to respond to Upstream’s queries on the PMC award.
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.
Gas export ambitions
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 neighbour.
The Fujairah LNG terminal could catapult UAE forward to becoming a major regional LNG exporter, thus competing with its neighbour 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% stake, with Mitsui holding 15%, BP 10%, and TotalEnergies 5%.