Marine Link
Tuesday, June 25, 2024

McDermott’s Subsidiary Grabs Marsa LNG Job Worth Up To $250M

Maritime Activity Reports, Inc.

May 8, 2024

© aerial-drone / Adobe Stock

© aerial-drone / Adobe Stock

CB&I, a wholly owned subsidiary of McDermott, has been awarded a significant contract by TotalEnergies and OQ joint venture for the engineering, procurement, construction (EPC) of a full containment concrete liquefied natural gas (LNG) storage tank, located in Oman's Port of Sohar.

Under the contract, awarded by Marsa Liquefied Natural Gas, CB&I will provide turnkey EPC services for a 165,000m3 full containment concrete LNG storage tank and associated piping to grade.

Project delivery will be executed in Oman, where CB&I has been continually present since 1968, with support from CB&I's Dubai office.

The exact value of the contract has not been disclosed, but CB&I defines a significant contract to be valued between $100 million and $250 million.

Work is expected to commence with construction activities in the fourth quarter of 2024, while the project is targeted for completion in 2028.

"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.

“It supports our ambition to build storage for projects that will help provide reliable energy to markets with a reduced environmental impact. It will also pave the way for similar storage opportunities in the future and continues our long history of execution excellence in the Middle East, specifically Oman,” said Cesar Canals, President & CEO of CB&I.

In April 2024, TotalEnergies and Oman National Oil Company (OQ) reached the final investment decision (FID) on the Marsa LNG project, which will feature an LNG plant completely powered by renewable energy that will produce LNG for use as a marine fuel for maritime transportation.

The LNG production prom the project is primarily intended to serve the marine fuel market (LNG bunkering) in the Gulf.

LNG quantities not sold as bunker fuel will be off-taken by TotalEnergies and OQ, the partners said.