Saipem JV Gets Thai LNG Job

Saipem, in joint venture with Taipei-based CTCI Corporation, has been awarded a new engineering, procurement, construction and commissioning (EPCC) contract by Thai PTT LNG Company, it said June 7.

The overall contract value is $925mn. Given its 55% interest in the joint venture, Saipem share is around $500mn. The project will be realised in the Rayong district, in the south-east of Thailand. Works include the engineering, procurement, construction and commissioning of the Nong Fab LNG terminal for the receipt, storage and regasification of LNG.

“As well as consolidating Saipem’s presence in an area with great prospects for development such as South-East Asia, the signing of this contract strengthens our position in the LNG sector which is of interest to us in terms of both the liquefaction and regasification segments. Furthermore, this contract represents a step forward towards achieving greater balance in our portfolio, between downstream and gas projects and those linked to upstream,” Stefano Cao, Saipem CEO, said.

Earlier this year, Tokyo Gas won the project management consultancy contract for the Nong Fab terminal. PTT, the state-owned parent of PTT LNG, plans to increase its LNG import capacity current 10mn mt/yr to 19mn mt/yr by 2023. With local gas supplies dwindling and only limited piped gas exports from Myanmar, Thailand's buoyant economy is increasingly relying in imported LNG to meet domestic gas demand. In recent years the southeast Asian nation has signed multiple LNG deals.

At present, Thailand has one operational import terminal, Map Ta Phut. PTT is expanding the capacity of the terminal to 11.5mn mt/yr.