The plant, due to come on line in 2006, will be located at Qatar's Ras Laffan Industrial City, a statement from the Dolphin Energy Limited (DEL) said.
It will be part of a massive Dolphin gas project, involving the production and processing of natural gas from Qatar's North Field and transportation of the dry gas by pipeline to the United Arab Emirates.
"The plant will receive wet gas from Dolphin's facilities in Qatar's offshore North Field, and will strip out valuable hydrocarbon liquids and liquefied natural gas products, for processing, marketing and sale,'" the statement said.
"The plant will compress the resulting dry gas for transportation by Dolphin's export pipeline to the UAE," the statement added.
DEL shareholders are Abu Dhabi government's Mubadala Development Company, Total of France and the US firm Occidental Petroleum.
The construction time for the new plant will be 42 months.
Dolphin also announced that Rolls Royce Energy Systems of UK would supply and commission six compression trains that will be driven by 52 gas turbines.
J Ray McDermott Middle East Inc was awarded a contract for the fabrication, installation and hook up of Dolphin Energy's two offshore production platforms in the North Field.
"The contracts are 'critical' to Dolphin's on-time delivery of its first gas to the UAE in 2006," Dolphin Energy chief executive office Ahmad Ali al-Sayegh.