JGC bags Papua LNG FEED contracts
Japan’s JGC Corp., in partnership with Hyundai Engineering & Construction, has been awarded the front end engineering design (FEED) and engineering, procurement and construction (EPC) estimation contract for the downstream LNG facilities for the Papua LNG project in Papua New Guinea, the company said on March 17. The contract has been awarded by ExxonMobil on behalf of the venture partners.
The Papua LNG partners have selected a concept using four electric LNG trains (e-trains) with a combined capacity of 4mn mt/yr to be developed within the existing PNG LNG project site. Papua LNG has also secured access to up to 2mn mt/yr of existing liquefaction capacity from PNG LNG.
The LNG facilities will adopt a design, where electric motors instead of conventional gas turbines drive the natural gas compressors. This will help reduce CO2 emissions during operations of the LNG facilities.
The partners had earlier this month launched a fully-integrated FEED for the Papua LNG project. Santos holds a 22.8% interest in Papua LNG along with joint venture partners TotalEnergies (40.1% and operator) and ExxonMobil (37.1%).
The state of Papua New Guinea may exercise a back-in right for up to a 22.5% interest at the final investment decision, which is planned for the end of 2023 or early 2024. Should Papua New Guinea exercise its full back-in right, Santos' interest in the project would reduce to 17.7%.