Saipem has been awarded two new engineering and construction (E&C) contracts for onshore and offshore work in the Indonesian Tangguh liquefied natural gas (LNG) expansion project.
The contracts were awarded by BP Berau Ltd., the operator of the project, on behalf of other production sharing parties.
“We are very pleased to have secured these two significant awards for the Tangguh LNG Expansion Project. These achievements represent Saipem’s capacity to contribute to satisfying South Asia’s growing energy demand through our diversified EPCI capabilities on offshore platform construction and installation and onshore LNG process trains,” Saipem CEO Stefano Cao, said.
BP Awards Offshore E&C Contracts To Saipem
The CEO added that, the contracts represent “recognition of the value of our strong embedded safety culture, our commitment to the development of local content and our integrated sustainability model”.
The first contract awarded to the drilling services provider is for the engineering, procurement, construction and installation (EPCI) of offshore facilities, which consist of two unmanned platforms and subsea pipelines.
Under the agreement, Saipem is expected to use its experience in the design, fabrication and installation of platform and subsea pipelines as well as use local content through its own manufacturing yard in Karmun, following the requirements of SKK Migas, Indonesia’s upstream oil & gas regulator.
Saipem Builds Tangguh LNG Train 3
The second contract entails the construction of an onshore LNG processing train expected to reach a total liquefaction capacity of 3.8 million tonnes of LNG per year.
A separate contract including utilities, offsites, an LNG jetty and associated infrastructure has been awarded to CSTS, a joint operation led by Indonesian EPC Contractor Tripatra with Chiyoda, Saipem and Suluh Ardhi Engineering.
The projects are scheduled for completion in 2020.
The contracts follow the company’s announcement earlier this month that a final investment decision (FID) had been approved for the Tangguh Expansion Project.
Under the approval, a third LNG processing train (Train 3) will be added to the Tangguh LNG facility, which is expected to bring total plant capacity to 11.4 million tonnes per year.