Oman Oil and Orpic Group announced that three companies have been awarded competitive front-end engineering and design (FEED) contracts as part of a new LNG plant set for construction and commissioning in Sohar Port, one of the largest industrial zones in the Middle East, approximately 200 kilometres to the west of Muscat, the capital of the Sultanate of Oman.
The project is developed by Oman Oil in partnership with Total E&P Oman Development who will also be the operator of the plant, after preliminary agreements were signed between the parties and the Ministry of Oil and Gas, Oman, in February 2019.
The three companies awarded FEED contracts are JGC Corporation from Japan, McDermott International from London and TechnipFMC from France. This project is intended to establish Oman as a regional LNG bunkering hub capable of supplying LNG as a fuel to marine vessels, with an annual LNG production capacity of 1,000,000 tonnes in Sohar. At the end of the FEED contract, the three contenders will compete for an engineering, procurement and construction (EPC) contract.
The global LNG bunkering market is entering a rapid growth period driven largely by the International Maritime Organization’s legislation to significantly limit sulphur emissions by January 2020.
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