Meed | TotalEnergies selects Marsa LNG contractor

TotalEnergies selects Marsa LNG contractor

25 January 2024

French energy major TotalEnergies has selected the main contractor for its planned project to build a major liquefied natural gas (LNG) bunkering and export terminal in Oman’s northern city of Sohar.

France-based Technip Energies has been picked to perform engineering, procurement and construction (EPC) works on the estimated $1bn LNG terminal project, according to sources.

Technip Energies received the letter of intent from TotalEnergies earlier in January, the sources said. The official contract award and the final investment decision meeting are yet to take place, they added.

TotalEnergies and Technip Energies did not respond to MEED’s request for comment on the information.

TotalEnergies is leading a joint venture named Marsa LNG, which is the Sohar LNG terminal project developer. Marsa LNG was formed in December 2021 through an agreement between TotalEnergies and the sultanate’s state energy holding company OQ. The partners own 80% and 20% stakes, respectively.

Marsa LNG intends to develop an integrated facility consisting of upstream units that will draw natural gas feedstock from TotalEnergies’ hydrocarbon concessions in the sultanate, particularly from Blocks 10 and 11; an LNG bunkering terminal and storage units located in Sohar port; and a solar photovoltaic (PV) plant to power the LNG terminal.

The Marsa LNG terminal will have a single train with the capacity to process about 1 million tonnes a year (t/y) of natural gas into LNG. The bunkering terminal will mainly supply LNG as a marine fuel to vessels.

MEED recently reported that TotalEnergies was evaluating proposals received from contractors last year for the Marsa LNG terminal project.

ALSO READ: Contractors submit commercial bids for Ruwais LNG facility

MEED, in July last year, reported that TotalEnergies had asked contractors participating in the Marsa LNG terminal project’s feed-to-EPC competition to submit revised proposals for the front-end engineering and design (feed) based on changes to the scope.

The following three contractors, which were previously selected to participate in the feed-to-EPC competition by TotalEnergies, submitted revised proposals for the feed by the end of August:

JGC Corporation (Japan)
McDermott (US)
Technip Energies (France)

According to sources, the bidders have been compensated by TotalEnergies for their feed submissions.

The validity of the contractors’ fresh proposals is until the end of February, sources previously said.

Feed-to-EPC contest

The feed-to-EPC model involves shortlisted contractors preparing feed proposals for the project. The project owner then evaluates those feed submissions, and awards the firm with the most competitive and efficient feed proposal the contract to perform the project’s EPC works.

TotalEnergies started the feed-to-EPC contest for the Marsa LNG project in May 2019 by shortlisting the three bidders.

The project operator had been on course to reach FID by the end of 2022, MEED previously reported.

TotalEnergies, however, eventually changed the project’s size and scope in 2023. Following modifications to the scope of work, contractors began “updating their feed proposals for Marsa LNG, based on the new requirements of the project”, a source previously told MEED, adding, at the time, that revised feed bids were due to be submitted during the “third quarter”.

According to the project’s revised timeline, EPC works will commence in the first quarter of 2024.

Project scope of work

The scope of work on the Marsa LNG project is broadly categorised into the following four segments:

Process structures – Gas inlet station unit, liquefaction unit and refrigerant storage unit (if applicable)
Utilities: Import power from national grid, fuel gas system, air cooling system, steam system, instrument and plant air systems, nitrogen recovery unit and fire water system
Offsite and common facilities: Flare, vent, relief and blowdown, LNG storage and loading unit, LNG rundown line, LNG bunkering facilities, boil off-gas handling
Support buildings: Control building, main administration building, LNG laboratory, warehouse, workshops, among others

MEED has previously reported that the key changes TotalEnergies has made to the Marsa LNG project include shifting the site at least 1 kilometre closer to the Port of Sohar facility. This will “enable easy and seamless refuelling and export activities”, according to one source.

Another alteration introduced building a solar PV farm to generate clean power to primarily run the LNG bunkering terminal.

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Indrajit Sen

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