MUSCAT, MAY 8
CB&I, a leading global contractor for tank and terminal storage solutions, has secured a major contract for the construction of a LNG tank at the new LNG bunker hub set to be built by Marsa LNG at Sohar Port and Freezone in the Sultanate of Oman.
Houston-headquartered CB&I, a subsidiary of energy sector engineering and construction giant McDermott, termed the value of the contract as “significant”, referring to values ranging from $100 - $250 million.
As part of the contract, CB&I will undertake the engineering, procurement, construction (EPC) of a 165,000 m3 full containment concrete LNG storage tank with associated piping.
Last month, Marsa LNG – a partnership of French energy group TotalEnergies (80%) and Oman’s integrated energy group OQ (20%) – announced a Final Investment Decision (FID) for the establishment of the 1 million tonnes per annum (mtpa) capacity LNG bunkering project, the output from which will be earmarked exclusively for maritime bunkering. Total investment in the project is estimated at $1.6 billion.
The LNG bunkering hub will be powered entirely by renewable electricity supplied by a 300 MWp capacity solar PV plant planned to be set up at Shinas, about 30km north of Sohar. When operational by Q1 2028, the plant is set to be one of the lowest GHG emissions intensity LNG plants ever built worldwide, with a GHG intensity below 3 kg CO2e/boe (as opposed to the average emission intensity of LNG plants of around 35 kg CO2e/boe).
Leading engineering and technology contractor Technip Energies has been selected by Marsa LNG to build the LNG bunkering hub at Sohar Port against an EPC contract.
For CB&I, the latest contract award builds on the company’s longstanding presence in Oman’s refining and petrochemicals industry. Operating in Oman since 1968, CB&I has been involved in the construction of storage tanks related to, among other projects, the refinery complex of OQ Group in Sohar.
A consortium of CB&I and Saipem was also awarded an EPC contract for Package 3 of the Duqm Refinery project, which included the construction of a crude tank farm at Ras Markaz.
"Through this project, CB&I will contribute to the construction of one of the lowest GHG emissions intensity LNG plants ever built and the energy transition market in Oman," commented Cesar Canals, President & CEO of CB&I, in a statement.
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