Japanese engineering firm JGC has won a US$355mn contract to design and build a mid-size gas plant for Bahrain National Gas (Banagas)
The facility will recover for export liquefied petroleum gas (LPG) and naphtha from associated gases released when extracting crude oil. The plant, slated for completion by September 2018, will be about 20 km south of the capital city of Manama and have a daily processing capacity of 9.9mn cu/m.
According to the Japanese firm, JGC beat French competitor Technip and US-based CB&I to win the deal in Bahrain.
Reports have suggested that high material and labour costs had made construction more expensive in Gulf countries. But that trend was halted by the recent decline in resource prices as well as an economic slowdown. This likely pushed the national gas company to expand its facilities. Parts makers are improving their ability to accommodate shorter timelines, which can cut costs further.
JGC is also pursuing smaller projects in the Middle East and Southeast Asia as plunging crude prices dampen demand for large oil and gas-related facilities.
