LNG Ltd obtain EPC proposal for LNG project and may look for investment partners
LNG Ltd has announced that the Front End Engineering Design (FEED) for its Gladstone LNG Project at Fisherman’s Landing has been completed and the Company has obtained a fixed price EPC proposal for the plant. The fixed price EPC offer includes performance and completion guarantees from its proposed EPC contractors, SK Engineering and Construction Co., Ltd (SKEC) and Laing O’Rourke Australia Construction Pty Ltd (LOR).
Key elements of the EPC proposal are :
- The trains each have a LNG production capacity of 1.75 million tpa. However, due to the nature of the proposed coal seam gas (CSG) supply arrangements, the guaranteed take or pay obligations for both gas supply and LNG offtake will be based on 1.5 million tpa, to provide significant operational and commercial flexibility.
- The fixed EPC price for the first LNG train, 180,000 m3 LNG tank and associated site infrastructure is US$ 720 million. This results in a cost of US$ 410/tpa for the first LNG train, excluding all marine works. The site can accommodate a further two trains at an additional cost of US$ 300 million each resulting in a total capital cost of US$ 268/tpa for 5.25 mtpa of LNG production capacity. The company’s Managing Director, Maurice Brand, said: “The lower capital cost, when compared to other LNG projects, is principally due to the use of the Company’s OSMR® process, the membrane LNG tank design and the access to existing infrastructure and services at the Company’s Gladstone LNG Project site, at Fisherman’s Landing.”
- The EPC construction schedule for this scope is 30 months from re-commencement of construction to first LNG production.
He went on to postulate that LNG Ltd may sell as much as 80% of the project to a strategic partner who would buy the fuel from the project. The company is in talks with seven potential partners and plans to sign an agreement by June. They are also in discussions to find an alternative partner to supply feed gas to the venture after their original partner Arrow Energy was taken-over by Shell and Petrochina.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/14052010/lng_ltd_obtain_epc_proposal_for_lng_project_and_may_look_for_investment_partners/
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