25/05/2012 - 15:54

Ichthys LNG awards tanks contract

25/05/2012 - 15:54

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Ichthys LNG awards tanks contract

Engineering contractor Laing O’Rourke and Kawasaki Heavy Industries have been awarded a contract to deliver four cryogenic tanks for the $34 billion Ichthys LNG project, with Perth-based engineering firm BG&E as their design consultant.

The engineer-procure-construct (EPC) contract awarded to Laing O’Rourke and Kawasaki will be one of the larger packages on the Ichthys project, being built in Darwin.

The tanks package consists of two 165,000 cubic metre LNG tanks, one 85,000 cubic metre propane tank and one 60,000 cubic metre butane tank.

BG&E will provide design services to Laing O'Rourke on the four pre-stressed concrete outer containment cryogenic tanks.

Laing O’Rourke CEO Steve Hollingshead said it was the second big win on the Ichthys LNG project in recent weeks.

“In April, we began work on the $260 million contract to deliver the 3500 bed Howard Springs accomodation village in Darwin,” Mr Hollingshead said.

“Being appointed to these two major contracts underlies the dedicated sector focus Laing O’Rourke has applied to the requirements of the Oil and Gas market, and our innovative approaches to Non Process Infrastructure.

“The Oil and Gas sector now makes up a significant portion of the $4 billion in work we’re currently engaged with in the Australian market, confirming Laing O’Rourke’s position as the region’s largest privately-owned engineering and construction contractor.”

Laing O’Rourke Oil and Gas Sector Leader Terry Bayliff said that the company had established its LNG tanks partnership with Kawasaki Heavy Industries five years ago as part of a long-term strategy. The partnership’s specific intent was to deliver the best technical and engineering solutions to complex LNG projects both here and globally.

“Over this period we have worked together closely to develop a very specific execution strategy that maximises off-site pre-fabrication, assembly and automated on-site methods,” Mr Bayliff said.

The Ichthys announcement follows the awarding of the tanks contract for Chevron's Wheatstone LNG project earlier this year. That $500 million contract, for two LNG tanks and two condensate tanks, went to Leighton Holdings subsidiary Thiess and French-owned company EV LNG.

US contractor CB&I won a US$550 million contract for the storage tanks on the Gorgon LNG project, curretly being built on Barrow Island.

The Ichthys project is a joint venture between Japan’s INPEX (76%, the operator) and France’s TOTAL (24%).

Gas from the Ichthys field, in the Browse Basin offshore Western Australia, will be exported to onshore processing facilities in Darwin via an 889 kilometre subsea pipeline.

 

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