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The International Petroleum Investment Company (IPICIPIC) plans to construct a crude pipeline project from Habshan in Abu Dhabi to Fujairah in order to reduce the reliance on oil terminals in the gulf and to decrease shipping congestion through the strait of Hurmouz.
The pipeline which will have a capacity of 1.5 million bpd will serve the proposed Fujairah grassroots refinery, for which IPICIPIC signed a heads of agreement with ConocoPhillips in July 2006.
The project will be implemented on a fast track basis.
On 12 June 2009, works on the offshore portion of the project is expected to start.
In Q1 2010, commissioning expected to start.
In August 2010, the whole project is expected to be completed.
Previous Events
In October 2008, CPECC awarded Italy's Belleli the USD 160 million storage tanks package in Fujairah.
In March 2008, construction started.
In December 2007, IPICIPIC awarded the pipes supply contracts worth USD 460 million to three companies: Sumitomo of Japan, Salzgitter Mannesmann International of Germany and Jindal Group of India. Delivery of the pipes (225 thousand tons of coated steel pipes) was expected to start in July 2008 and end in January 2009.
In September 2007, IPICIPIC signed Pre-EPC Services Agreement with China Petroleum Engineering & Construction Corp (CPECC). The FEED contract was awarded to WorleyParsonsWorleyParsons.
In July 2007, ITB for the FEED contract issued.
On 28 May 2007, the EPC contract was signed by China Petroleum Pipeline Bureau and China Petroleum Engineering & Construction Corp (CPECC).
In March 2007, the PMC contract was awarded to ILF Consulting Engineers.
In February 2007, the ITB for the PMC contract was issued.
On 29 January 2007, International Petroleum Investment Company (IPICIPIC) and China Petroleum Engineering & Construction (Group) Corporation (CPECC) signed a facilitation agreement under which CPECC will provide certain services, as requested by IPICIPIC, prior to the finalization of the EPC contract.
In 2006, conceptual design was completed by Tebodin.
Scope of Work
Construction of:
- A 400 km, 48 inch diameter pipeline including a 14 km submarine section, with a designed rated delivery capacity of 1.5 million bpd and a designed maximum capacity of 1.8 million bpd - A connecting station - An initial station - An intermediate station - A terminal station - 3 offshore single-point mooring devices - Storage tanks.
Expected Schedule
Phase
Schedule
Description
EPC
12 Jun 2009
Works on the offshore portion expected to start
Completion
Aug 2010
Project expected to be completed
Project Schedule
Schedule
Phase
Description
2006
Design
Conceptual design completed by Tebodin
Nov 2006
PMC
Prequalification process started
29 Jan 2007
EPC
Facilitation agreement signed with China Petroleum Engineering & Construction Corp (CPECC)
Standalone Project 
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