LNG (LIQUIFIED NATURAL GAS)

Exxon hands out PNG LNG contracts

EXXONMOBIL has approved a number of engineering, procurement and construction contracts for PNG L...

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The key contract for the 6.6 million tonne per annum liquefied natural gas plant was awarded to Japanese companies Chiyoda Corporation and JGC Corporation.

This includes the facilities for processing and treating natural gas, liquefaction, storage and loading.

ExxonMobil also awarded the contract for the Hides gas conditioning plant to a joint venture between CBI and Clough, while a JV between McConnell Dowell Constructors and Consolidated Contractors Group Offshore won the contract for support infrastructure.

The support contract includes the construction of a new airfield at Komo, the site of the project airport; about 21km of upgraded track with two new bridges capable of heavy load transport between Hides and the airfield; about 21km of fibre-optic cable along the same route; and the upgrading of up to 20km of road to support airfield construction.

SPIECAPAG will provide the project with onshore pipelines and infrastructure while Saipem won the contract for the offshore pipeline.

All contracts are pending completion of project sales and purchase agreements with buyers as well as finalisation of financing arrangements with lenders.

Meanwhile, Oil Search, which operates the gas fields that will feed the project, has awarded an engineering, procurement, construction and management contract to Aker Solutions for the construction of all facilities to deliver gas from the existing oil fields to the LNG Project.

The PNG LNG project is expected to cost about $US15 billion ($A16.6 billion) and will have a production capacity of 6.6 million tonnes per annum of LNG.

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