Oman: SNC-Lavalin and Al-Hassan Engineering win $115m contract in Oman

canada’s snc-lavalin in partnership with oman’s al-hassan engineering co has been awarded a $115m turnkey contract to design and build the saih nihayda gas treatment facility (sngp) in oman.

the facility will consist of the gas separation and treatment of 20 million cubic metres a day, handling of 10,000 cubic metres a day of condensate and 1,000 cubic metres a day of water and associated facilities.

it is the first package of an estimated $250m project to expand upstream gas infrastructure in the central oman gasfields and to provide feedstock for the third oman lng train at sur as well as some of the petrochemical industries planned in sohar starting 2005.

the venture is sponsored by petroleum development oman and divided into three separate engineering, procurement and construction (epc) packages.

the second package entails the instalment of wellhead compression facilities at yibal and the third package involves installing a 48-inch diameter pipeline running from the field to sur and the construction of a gas booster station.

pre-qualification lists for all three contracts were released in late 2001. the-qualifiers for the gas plant were: daelim engineers & construction company; japan's jgc corporation; us-based petrofac international, with the local galfar engineering & contracting; italy's snamprogetti; france's technip, with india's dodsal; and canada's snc lavalin, with local firm al-hassan engineering.

a tender for the project was only launched after oman lng (olng) had successfully secured offtake agreements for the output of the third train with spain’s union fenosa in late may. according to the offtake deal, olng will supply 2.2bn cubic metres of gas a year to spain from 2006