Chinese firm being engaged for completion of Uch-1 gas project

Engineering Post Report 

The Oil and Gas Development Company (OGDC) was in the process of engaging a Chinese company HBP  for completion of its Uch-1 gas field compressors project. The Oil and Gas Development Company (OGDC) was in the process of engaging a Chinese company HBP  for completion of its Uch-1 gas field compressors project.

The OGDC has decided to engage   the second lowest  bidder to complete the project in order to avoid delay in time that may occur in   calling for fresh bids which may also cause cost escalation in view of the massive appreciation of the US dollar in the country.

According to the  OGDC sources, the Uch gas field project was scheduled to be completed  by July-September 2024 under the gas sales agreement with the French company owning the Uch power plant.

In case the project completion was delayed on one account or the other, not only the OGDC’s reputation will be at stake  but it also has to pay a penalty of $ 600000 per day to the French company.

The flow of low BTU gas in the Uch gas field  has gone down and in order to maintain  the flow of the gas to Uch power plant , with the required  pressure, OGDC  had announced  to initiate  the Uch gas field  compression project and accordingly floated the tender for the project, the sources explained.