(Posted on 13-02-2012) View All News

Hyundai well geared for Musandam Gas Plant execution

Korean construction giant Hyundai Engineering & Construction has pledged to deploy its formidable resources and capabilities in ensuring the timely implementation of the Musandam Gas Plant project – an investment of vital importance to the goverrnnorate’s long-term economic and social development.

Oman Oil Company Exploration and Production (OOCEP), the upstream subsidiary of the goverrnnment owned energy investment firm Oman Oil Company, is ploughing around $600 million in the development of the integrated oil and gas processing scheme.

As the first major energy infrastructure development in the Musandam Goverrnnorate, the project will catalyse economic growth in this strategically important Omani enclave overlooking the Strait of Hormuz.

Besides, gas volumes produced by the facility will not only provide energy feedstock for the goverrnnorate’s first gas-based power plant, but also potentially spur investments in industrial projects as well.

As it approaches the 12-month milestone in a three-year timeframe stipulated by OOCEP for the completion of the project, Hyundai as the engineering-procurement-construction (EPC) contractor, has vowed to bring its considerable expertise to bear on the expeditious execution of the plant.

February 15 marks one year since construction work began in earrnnest on the project. Plant commissioning and performance testing is slated to commence from September 2013. The project itself is scheduled to be handed over to OOCEP on February 15, 2014.

The task before Hyundai, or for that matter any contractor operating in Musandam, is daunting, given especially the remote and extremely rugged topography of this mountainous region. Lack of suitable maritime-based and inland transport infrastructure also complicates matters on the logistics front. And further compounding the challenge before Hyundai is the limited area of the project site at Tibat, sandwiched between towering mountains on one side and the open sea on the other.

But according to a senior project official, the contractor’s longstanding experience in executing technically complex plants in challenging environments, will stand Hyundai in good stead in meeting its project commitments.

“Over the past 34 years, we have led change and innovation in the engineering construction field. Our deep and lengthy experience in industrial plant construction is our unique capability,” the official stated in remarks to the Observer.

Rock excavation constitutes a sizeable and expensive component of Hyundai’s construction brief. Adjoining hills overlooking the project site will have to be cleared to make way for the Musandam Gas Plant – a task that must be completed within 12 months. At the same time, suitable spots must be readied in the proximity of the project for the storage of equipment and the facilitation of fabrication activities.

Given the challenging timeframe for the completion of the project, Hyundai has mobilized an army of workers whose numbers will rise to 2,200 employees when construction peaks during 2013.

As part of its brief, Hyundai will build an integrated processing plant with a capacity to treat 45 million standard cubic feet per day of gas and 20,000 barrels per day of crude oil.

Single point mooring facilities and crude export pipelines are also included in the project scope. Additionally, the plant will yield 52 tons per day of sulphur and 80 tons per day of LPG. Worley Parsons are Project Management Consultants.

The Musandam Gas Plant represents Hyundai’s first major energy infrastructure related contract in the Sultanate. In the Gulf region, Hyundai has successfully executed a number of large-scale ventures including the Dow-Pic Olefin 2 project (Kuwait), KNPC berth 5/6 expansion (Kuwait), Khrais Central Processing Plant (S Arabia), Pearl GTL-LPU project (Qatar), Ethane Recovery Plant (Kuwait) and AAC Ethylene-amines project (Saudi Arabia).

Other schemes currently under implementation are the Habshan-5 Utilities and Offshore project (S Arabia), Karan Gas Facilities (S Arabia), and Group III Base Oil Production Facilities (UAE).

*Source: Oman Daily Observer