JGC-KBR, a 50-50 joint venture, has been awarded the contract for a gas field development project in In Salah, Algeria by a joint venture formed between BP and Sonatrach. JGC is to provide engineering, procurement, construction and commissioning services. The contract is a lump-sum, turnkey type, with JGC's share estimated at approximately 40 billion yen. Delivery is scheduled for June 2004.
The contract calls for development of three gas fields (Krechba, Reg, Teguentour) in the In Salah area. The project will include construction of gas processing facilities, gathering pipelines, infrastructure including roads, airfields, and housing facilities, pipelines connecting Reg and Teguentour to Krechba, and a gas compression station at Hassi R'mel. In addition, the project is to provide the basic design for the Krechba - Hassi R'mel pipeline along with detailed design work.
JGC received a contract for the project's conceptual design work in November 1997. Since then, for the FEED and pre-sanction engineering services, JGC, in technical collaboration with the client, was successful in significantly reducing in the initial estimates the overall investment required for development. In addition, JGC's wealth of experience and record of success, as well as its excellent technological capabilities and cost competitiveness, were highly rated by the client and led to the award of this project.
In recognition of the environmental need to properly handle greenhouse gases, the project is taking the pro-active step of returning safely underground the carbon oxide gas separated from natural gas.