Saipem nets two Tangguh LNG engineering contracts

03 August 2016, Week 30 Issue 536

Italian contractor Saipem has won two engineering and construction contracts for the Tangguh LNG expansion project in Indonesia.

The two contracts – one offshore and the other onshore – were awarded by BP Berau, a BP subsidiary and operator of the Tangguh LNG project, Saipem said last week, without disclosing deal values.

According to Saipem, the first contract is for the engineering, procurement, construction and installation (EPCI) of offshore facilities, which consist of two unmanned platforms and subsea pipelines.

“Saipem will leverage its strong technological expertise in the design, fabrication and installation of platform and subsea pipelines. In accordance with the requirements of SKK Migas, Indonesia’s upstream oil and gas regulator, Saipem will contribute to local content enhancement, including through its own Karimun fabrication yard,” Saipem said.

The second contract is for the construction of an onshore LNG process train with a liquefaction capacity of 3.8 million tonnes per year, utilities, offsites, an LNG jetty and associated infrastructure, Saipem said. The contract was awarded to a consortium of Saipem,

Japan’s Chiyoda and Indonesia’s Tripatra and Suluh Ardhi Engineering. The project is anticipated to be completed in 2020, Saipem said.

The Tangguh LNG plant in West Papua Province started operations in June 2009. It currently has two trains each with a production capacity of 3.8 million tonnes per year.

BP announced a final investment decision (FID) on the Tangguh LNG expansion on July 1. The project will build a third train with an annual production capacity of 3.8 million tonnes, boosting the overall production capacity of the Tangguh LNG plant to 11.4 million tonnes.

Three-quarters of Train 3’s production will be sold to Indonesian state power utility PLN and the remaining 25% will be bought by Japan’s Kansai Electric Power.

Indonesia is one of the world’s largest LNG exporters. But after exporting the fuel for many years, the country is now shifting its focus to meet growing domestic demand.

Edited by

Andrew Kemp


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