(EnergyAsia, January 26 2012, Thursday) — Australia’s Liquefied Natural Gas (LNG) Ltd has awarded an engineering, procurement and construction (EPC) services contract to China Huanqiu Contracting & Engineering Corporation for its Fisherman’s Landing liquefied natural gas project in Queensland state.
The companies signed the US$760 million contract for the first train, including the tank and support infrastructure for the eventual three-million-tonne a year project in the Port of Gladstone.
LNG Ltd said it awarded the contract after consultant HQC completed the Front End Engineering Design (FEED) study for the train with a design production capacity of 1.9 million t/y and guaranteed capacity of 1.5 million t/y.
“Based on the estimated EPC contract price, the total estimated cost including marine works and other development and financing costs remains at US$1.1 billion for one train,” said the Perth, Western Australia-based firm.
LNG Ltd said it and HQC will proceed to complete the detailed engineering design and agree a fixed lump sum EPC contract price and bankable EPC contract by June 30.
The objective is to have the definitive and legally binding fixed price EPC contract agreed and ready for signing on the project to secure gas supply before progressing to the Final Investment Decision (FID) stage.
Based on the FEED and other work undertaken by HQC to date, LNG Ltd said the construction schedule remains unchanged at 30 months from FID to production start-up.
LNG Ltd’s managing director, Maurice Brand, said the company’s primary focus remains on securing gas supply and ensuring the project progresses to the FID and construction stages.
China Huanqiu, a subsidiary of state-owned China National Petroleum Corporation (CNPC), is LNG Ltd’s largest shareholder with a 19.9% stake.