OGDC engages Chinese firm to complete Uch-1 gas project

ISLAMABAD: The Oil and Gas Development Company (OGDC) has engaged a Chinese company HBP to complete the Uch-1gas field compressors project.

“Now the OGDC management has engaged the Chinese company that has sought 3-4 days to respond. And if the company shows a willingness to start working on the project, then the contract of the project would be handed over to it,” OGDC spokesman told The News.

The HBP is the same Chinese company that completed the Nashpa gas processing and LPG recovery plant. “We want to avoid the initiation of a fresh bidding process as it will take time and keeping in view the massive appreciation of the US dollar in the country because of the peculiar economic situation, the cost of the project would escalate as a result of the new bidding process, which is why the OGDCL management has decided to engage the second lowest bidder to complete the project,” the spokesman said.

To a question, he said that the Uch gas field compression project is scheduled to complete by

July-September 2024 under the gas sales agreement (GSA) with the French company owning Uch power plant.

“In case the project gets delayed, then the OGDC’s repute will not only be at stake but it will have to pay a penalty of $660,000 per day to the French company.

The flow of low BTU gas in the Uch gas field has gone down and 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 floated the tender for the project,” the spokesman explained.