OIL & GAS - LNG Phase V

The fifth train is the major component of the proposed LNG Phase V expansion project of the Woodside-operated North West Shelf Venture on the Burrup Peninsula near Karratha in Western Australia. First cargoes of LNG from Train 5 are anticipated by the fourth quarter of 2008. The fifth train will be similar in size and production capacity to the fourth train which can produce 4.4 million tonnes of LNG a year. The expansion project also includes an additional fractionation unit, acid gas recovery unit, boil-off gas compressor, two new gas turbine power generation units, a second loading berth and a new fuel gas system compressor.

The engineering, procurement and construction management (EPCM) contract for the LNG Phase V expansion project to a joint venture of WorleyParsons (25%) and Foster Wheeler (75%). Clough Limited and joint venture partner Interbeton bv have awarded construction of a second LNG loading berth. The jetty extension contract is worth about A$100 million. All construction activities will be performed from the Interbeton supplied IB909 jack up barge. CBI was selected as the mechanical erection contractor for construction of a fifth liquefied natural gas production train.

Downer EDI Limited was awarded a contract for above ground electrical and instrumentation work. The will focus on the new LNG processing train and includes a new load-out jetty, new boil-off gas compressor, acid gas removal unit, new fractionation train and facilities, gas turbine generators and associated switch rooms and auxiliary rooms. Downer Engineering's mobilization at the site has commenced with completion of the contract scheduled for first quarter 2008. The onsite workforce involved in the project is expected to peak between 150 and 190.

Site work started in mid 2005 and the project is expected to take approximately three years to complete with commissioning due to start around mid-2008 and first LNG cargoes planned from Q4 2008. By mid-2007, the project’s construction workforce is expected to peak at up to 1500 people.

The expansion will now cost A$2.425 billion, 21% more than initially budgeted because of escalating construction costs.




 
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