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Fujairah Emirates LNG Terminal at bidding stage

Mubadala and IPIC review Emirates LNG EPC tenders

2B1st_Project_Smart_Explorer_Sales_Pursuit_ToolThe Abu Dhabi Sovereign funds Mubadala Petroleum (Mubadala) and the International Petroleum Investment Company (IPIC) are currently reviewing the tenders submitted by the qualified bidders for the engineering, procurement and construction (EPC) contracts to be awarded for the Emirates LNG Terminal and Regasification project on the coast of Fujairah on the northeast of the United Arab Emirates (UAE).

Mubadala and IPIC established the 50/50 Emirates LNG joint venture (JV) in order to secure the natural gas supply into the Emirates.

Mubadala-IPIC_Fujairah-LNG-Terminal-project_MapIn the 2000s years, Mubadala initiated the Dolphin project to import natural gas from Qatar through a pipeline which turned into commercial operations in 2007.

Anyway the UAE economy remains very much depend on the gas supply to power the electrical generation as well as to feed the multiple petrochemical complex planned by the Kingdoms.

As the main supply is coming from the neighboring Gulf countries, the UAE are keen to diversify their sources out of the global gas markets, especially Asia-Pacific and East Coast of Africa.

In that respect the Fujairah Emirates offers a strategic location along the Gulf of Oman opening direct access on the Indian Ocean .

This position allows Mubadala and IPIC to consider Fujairah as the best place to build the Emirates LNG Terminal and Regasification project as it prevents the LNG carriers to come across the sensitive Strait of Hormuz.

Originally planned to be developed in two phases whereas Mubadala and IPIC should have first moored floating storage and regasification units (FSRU) units and then expanded this near-shore terminal with landed-base storage facilities.

Emirates LNG to award Fujariah Terminal EPCs in 2015

In 2013 Mubadala and IPIC redefined their Fujairah Emirates LNG Terminal and Regasification project to be fully landed.

While rethinking Fujairah Emirates LNG project concept, Mubadala and IPIC maintained the capacity of the regasification to 9 million tonnes per day (t/d) of liquefied natural gas (LNG) that should deliver 1.2 million cubic feet per day (cf/d) of natural gas to the UAE.

Mubadala-IPIC_Fujarirah_Emirates-LNG-Terminal-projectThe Fujairah Emirates LNG project should include two EPC packages:

 – EPC-1 the LNG dowloading and regasification units

 – EPC-2, the storage tanks and associated facilities

Three engineering companies are bidding on the first package for the regasification plant with an estimated budget of $900 million capital expenditure.

Four competitors submitted a technical offer for the second package covering four storage tanks of 200,000 cubic meter of natural gas.

These companies are expected to submit their commercial offers by the end of year.

Most of the imported gas through the Fujairah Emirates LNG terminal and Regasification project should be directed to the power generation supply.

In a second phase, Mubadala and IPIC are considering to expand the Fujairah Emirates LNG Terminal and Regasification capacity by an additional 6 million t/y of LNG.

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