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JGC signs $98m deal for Bahrain gas pipeline

JGC Corporation has announced that its affiliated company in Saudi Arabia, JGC Gulf International Co., Ltd., has been awarded a contract for the Gas Pipeline / Gas Storage Tank Construction Project in Awali, Bahrain, planned by the Bahrain National Gas Expansion Company (S.P.C.) (BNGEC).

The contract covers for engineering, procurement, construction, and commissioning (EPCC) services for gas pipeline and gas storage tank construction. The project is scheduled for completion in September, 2018.

The value of the lump-sum turnkey basis contract is approximately 10 billion yen.

This project is intended to construct feed gas and product gas transfer pipelines and product gas storage tanks to be used for the gas processing plant for which JGC signed a construction contract with BNGEC in January, 2016. The produced oil component gases (LPG and naphtha) shipped from the storage facilities will be exported from Bahrain. The construction of these facilities is expected to contribute to the further economic growth of Bahrain.

Since two gas processing plants were constructed for Bahrain National Gas Company (B.S.C) (BANAGAS) in the 1970s and 1980s, JGC has been continuing to execute a considerable number of projects in Bahrain. Since its establishment in 2008, JGC Gulf International has also executed more than ten projects in Bahrain including the execution of compressor station expansion work and existing facility revamp work for BANAGAS.

JGC considers that the success in obtaining this contract is attributable to the result of an overall evaluation, namely, JGC Gulf International’s technological capabilities and cost competitiveness, JGC Group’s accumulated experience in a wide range of project execution in Bahrain, and synergy effects expected from the execution of the gas processing plant construction project which has been awarded to JGC and is now being executed by JGC.

Aiming at building up further trust between JGC and BANAGAS, JGC will complete this project successfully by making the best use of its comprehensive capabilities as the JGC Group, its outstanding technologies, and its extensive knowledge and experience accumulated through project execution in Bahrain.

The Middle East including Bahrain is one of the most important markets for JGC which has accumulated extensive experience in this area. In Bahrain, several oil refining projects are planned in the future. JGC will continue to be active in developing business activities in the Middle East in collaboration with JGC Gulf International.

Source: www.jgc.com