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Samsung Engineering and KBR to design and construct Texas LNG project

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LNG Industry,

Texas LNG Brownsville LLC has announced that it has awarded Samsung Engineering Co. Ltd and KBR Inc. contracts to construct its proposed 4 million tpy LNG export facility.

Under the contract, Samsung and KBR will provide pre-final investment decision (pre-FID) detailed engineering, and post-final investment decision (post-FID) engineering, procurement and construction (EPC) services for the project.

Samsung is a minority equity owner and technical partner of Texas LNG, and has already carried out the conceptual study, pre-front end engineering and design (pre-FEED) and FEED work for the project. The project design involves the construction of modular designed and pre-fabricated liquefaction trains, using proven technology and standardised components in a controlled shipyard environment. This will help to decrease the overall cost of the project, reduce complicated civil construction works, minimise local onsite environmental impact, and minimise construction costs during the permanent installation.

As Texas LNG’s owners’ engineer, Braemar Engineering is working with Samsung and KBR and continues to identify value engineering enhancements to decrease project costs and optimise performance. The company is also responding to data requests during the US Federal Energy Regulatory Commission (FERC) permitting process.

KBR, meanwhile, has experience in the design and fabrication of over 1.3 million t of modules, including the world’s first fully modularised LNG facility. It also has 30 years of experience with the APCI AP-C3MR™ technology, which Texas LNG will be using for its export plant.

Samsung and KBR will focus on value engineering and optimisation for the proposed 4 million tpy export facility to be constructed in two 2 million tpy stages. Pre-FID detailed engineering is expected to commence in 2017, and will include further design and schedule optimisation, identification of long lead times and early work commitments. It will also include early preparation of purchase orders, as well as all due diligence in relation to technical commercial and contractual matters that will allow Samsung and KBR to execute a lump sum turnkey (LSTK) EPC contract for the Texas LNG plant. Over the coming months, agreements between Texas LNG and Samsung and KBR for pre-FID detailed engineering EPC will be negotiated.

Jae Hoon Choi, the Executive Vice President and CMO of Samsung Engineering, said: “We want to firmly establish our competitiveness in LNG and have successfully completed the Texas LNG FEED in 2016. We’ve formed a multidisciplinary LNG task force consisting of LNG liquefaction process engineers, modularisation specialists, and cost and schedule experts. Samsung Engineering and KBR will execute an EPC with Texas LNG and deliver a high-quality LNG plant at a world competitive price.”

This milestone towards FID follows the recent announcement that Texas LNG has executed detailed non-binding term sheets with four independent LNG purchasers in Southeast Asia and China for a volume of 3.1 million tpy.

FID for the development of the project is expected in 2018.

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LNG project news US LNG news Gulf coast LNG news LNG export news