Page 10 - Downstream Monitor - MEA Week 28
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DMEA terminaLs & shiPPinG DMEA
McDermott wins bunkering FEED contract at Sohar LNG
middLe east
US services rm McDermott has been awarded a contract to provide front-end engineering design (FEED) services for the Sohar LNG Bun- kering project in Oman.
e deal, which is worth up to US$50mn, was awarded by the local subsidiary of French super-major total in collaboration with Oman Oil Co. (OOC).
Announcing the deal, McDermott said that the deal covered fully de ning the onshore mid- scale LNG facilities and preparing a competitive tender for the engineering, procurement, supply, construction and commissioning phase.
e rm alluded to a “rapid growth period” in the LNG bunkering market “driven largely by the International Maritime Organization’s [IMO’s] legislation to signi cantly limit sulphur emissions”.
Alongside Abu Dhabi, Oman is at the fore- front of Middle Eastern e orts to move into the small but fast-developing segment, with both taking steps in February this year through tie- ups with international players.
While total signed the upstream agreements required to feed the Sohar bunkering plant, Abu Dhabi National Oil Co. (ADNOC) subsidiary ADNOC Logistics & Services agreed to collab- orate with a Norwegian specialist in small-scale LNG transport and bunkering, Kanfer Shipping.
total, Royal Dutch Shell, OOC and the Ministry of Oil & Gas signed memoranda of
understanding (MoUs) in May 2018 calling for the development of gas reserves in the west-cen- tral Greater Barik area of Block 6, a substantial concession covering the bulk of the sultanate’s onshore territory. is is operated by Petroleum Development Oman (PDO), a government-led joint venture in which the two foreign compa- nies are minority shareholders.
Output is targeted at an initial 14.2mn cubic metres per day, rising later to around 28 mcm per day. total has committed to deploying its 25% equity share to develop a 1mn tonne per year (tpy) modular LNG plant and bunkering facility at Sohar.
While major expansion may be di cult, bun- kering is a potentially attractive option. Shipping use is low, for now, but is likely to increase follow- ing the IMO 2020 rules.
e Omani government is keen to turn Sohar into a bunkering hub, despite its proximity to the well-established refuelling centre at Fujairah, on the UAE’s east coast.
e port has seen a large increase in tra c over the past 20 months as a result of the UAE and Saudi-led embargo against Qatar – with supplies in and out of the latter thus rerouted via northern Oman.
On July 17, Japan’s JGC Corp. announced that it had been awarded an FEED contract by total under a triple FEED competition scheme for the Sohar LNG Bunker project.
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w w w . N E W S B A S E . c o m Week 28 17•July•2019
