JGC Corporation in partnership with Hyundai E&C secured a front-end engineering design, and EPC estimation contract for downstream LNG facilities in Papua LNG Project. This way Papua LNG downstream FEED deal was awarded to JGC and Hyundai.
Japan-based JGC Corporation with Hyundai Engineering and Construction (E&C) secured the deal for front-end engineering design (FEED) along with engineering, procurement and construction (EPC) estimation contract. ExxonMobil Corporation awarded the contract which holds a 37.1% interest in Papua LNG on behalf of venture partners of the project.
Under this downstream FEED contract, both companies will design approximately 4 million tons of Liquefied Nitrogen Gas (LNG) capacity. It will be adjacent to their existing PNG-LNG processing facilities.
These facilities are located 20 kilometers northwest of Port Moresby in Papua New Guinea and natural gas here is sourced from the Elk Antelope gas field. About 2 million tons per year of liquefaction capacity in their existing trains of PNG LNG is also included in this project.
Other companies holding a percentage interest in the project are TotalEnergies (40.1%) and Santos (22.8%). And the State of Papua New Guinea may exercise its back-in right interest of about 22.5% interest at the final investment decision that will be planned by the end of 2023 or in early 2024.
LNG facilities accounting more than 30% of world LNG production have been under JGC Group. Currently, the company is executing 3 projects, an FLNG (floating liquefied nitrogen gas) project in Mozambique and other in Malaysia, and the 3rd one is a large scale LNG project in Canada.
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An E-Drive design will be adopted by the LNG facilities. Under this, electric motors will drive the natural gas compressor instead of a conventional gas turbine. With this technology CO2 emission during the operations of LNG facilities will reduce to a large extent, as mentioned by JGC.
Papua LNG downstream FEED deal was awarded to JGC and Hyundai and a fully integrated FEED was launched for their project in Papua New Guinea. The partner company delegated the construction and operation of electrical liquefaction trains to ExxonMobil.
Source: JGC