Following the decision, Methanol Australia (MEO) appointed the Offshore Methanol Joint Venture, a 50-50 partnership between Aker Kvaerner and Worley Limited, to undertake significant components of the front end engineering and design (FEED) studies for the $2 billion Tassie Shoal Methanol project.

The agreement includes coordination of substructure studies, process engineering and topside layout, design of utility and loadout systems, and to prepare final costing and documentation.

The FEED studies decision follows up on the appointment of Fluor Australia to assist in engineering management and contracting/construction strategy.

The joint venture appointment has the support of Kvaerner subsidiary, Davy Process Technology (DPT), who will develop the basic engineering package for the plant and is the developer of the unique methanol production processes to be utilised by MEO in its methanol project.

MEO is currently completing the last of a series of optimisation studies for process design, and is compiling the necessary base data that will be required for FEED studies, scheduled later this year, and to be managed by Fluor.

The proposed facility will be located offshore in the Australian waters of the Timor Sea, around 275km northwest of Darwin, in an area of shallow water only a few kilometres south of the giant Evans Shoal gasfield, the expected gas source to supply the project.

When both phases of the development are completed, 10,000 tonnes of methanol will be produced every day and exported to consumers in Asia. At the current methanol prices, the annual export sales revenue will exceed $1 billion.