A wholly owned subsidiary of US energy engineers McDermott has been awarded a significant contract by the Marsa liquefied natural gas project in the Sultanate of Oman on the Arabian Peninsula for storage and associated piping.
McDermott, based in Houston, Texas, has confirmed that its subsidiary CB&I will build a full containment concrete LNG storage tank at the Marsa project site at Oman's Port of Sohar.
French major TotalEnergies is going ahead with a large investment in the Marsa LNG project to serve as the first LNG bunkering hub in the Middle East.
The joint venture between TotalEnergies and Oman National Oil Company will build a liquefaction plant with 1 million tonnes per annum of output.
Feed-gas will come from Oman’s Mabrouk North-East field in the onshore Block 10 area.
Contractors
The main engineering, procurement and construction contracts have been awarded to France’s Technip Energies for the LNG plant and to CB&I for the 165,000 cubic metres capacity LNG storage tank.
The LNG is primarily intended to serve the marine fuel market in the Arabian Gulf region while LNG quantities not sold as bunker fuel will be off-taken by TotalEnergies and the Omani partner.
In addition to the storage tanks contract, CB&I will provide turnkey EPC services for the tank and associated piping.
Project delivery will be executed in Oman, where CB&I has been continually present since 1968, with support from CB&I's Dubai office.
“Through this project, CB&I will contribute to the construction of one of the lowest GHG emissions intensity LNG plants ever built,” said Cesar Canals, President and Chief Executive of CB&I.
“It supports our ambition to build storage for projects that will help provide reliable energy to markets,” Canals explained.
“It will also pave the way for similar storage opportunities in the future and continues our long history of execution excellence in the Middle East, specifically Oman,” he added.
Work is expected to commence with construction activities in the fourth quarter of 2024.
The overall Marsa bunkering fuel projects is targeted for completion in 2028.
The Oman LNG bunkering project for the Port of Sohar has advanced with the signing of a series of agreements for an Omani onshore gas field known as Block 10 and involving French major TotalEnergies, the Oman National Oil Company and Shell.
UK major BP has sold a 20 percent stake for $2.6 billion to Thailand’s national energy company in key tight natural gas fields onshore the Sultanate of Oman that enabled the Arabian Peninsula nation to stabilize then boost LNG exports over the past three years.