Emirati giant plans to develop 10 million tonnes per annum liquefaction facility at Fujairah. Up to four leading international engineering giants are in the frame for a key contract from Abu Dhabi National Oil Company (Adnoc) for work on a liquefied natural gas export terminal in the United Arab Emirates.
Multiple people familiar with the development told Upstream that bids were recently submitted for a front-end engineering and design tender involving the LNG export facility.
Adnoc plans to develop a two-train 10 million tonnes per annum liquefaction facility at Fujairah to cater to several gas markets around the world and is pressing ahead with the project’s FEED tender.
The bidders are said to include KBR, Fluor and McDermott International of the US and engineering giant Technip Energies, one person said.
Japan’s JGC and Chiyoda were also said to be initially eyeing the FEED job but are no longer in the fray, he added.
Adnoc is expected to finalise the preferred bidder within weeks and the FEED study is likely to be carried out later this year, another one said.
An Adnoc spokesperson declined to comment on the FEED tender.
The UAE’s LNG ambitions are a part of its drive to become a key gas exporter in the long-term and to reduce its dependence on imported Qatari gas.
Adnoc chief executive Sultan Ahmed al Jaber has earlier highlighted the UAE’s ambitions to emerge as a key LNG exporter on the back of several gas-focused upstream developments in the emirate, including the giant Hail & Ghasha sour gas scheme.
The company is separately progressing with a revised FEED study on the Hail & Ghasha project 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.
A final investment decision on the LNG export facility has not yet been announced, but sustained highs in oil and gas prices — including record spot prices for LNG — are encouraging many Middle East producers to step up their plans to boost their gas-producing capacity, which could fast track Adnoc’s plan to sanction the LNG project, Upstream undertands.
Two LNG trains
The Fujairah liquefaction plant will include process facilities, flare and utilities, project watchers said. LNG storage tanks, an export jetty — with an option for bunkering — and other associated facilities are also likely to be involved.
The workscope could also include the laying of a new 52-inch gas pipeline from Habshan to Fujairah, with the capacity to handle up to 2 Bcfd.
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%.