CB&I Wins Contract for Ichthys LNG Storage Tanks

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Researched by Industrial Info Resources Australia (Perth, Australia)--The newest key contract award on the Ichthys LNG project has been given to the top-ranked engineering, procurement and construction (EPC) company Chicago Bridge & Iron (NYSE:CBI) (CB&I) (The Hague, Netherlands), for non-cryogenic storage tanks.

Construction on the Ichthys LNG project is progressing at its full potential. The INPEX-owned project will be one of the biggest LNG processing plants in Australia and only the second to be built in the Northern Territory. The foundation phase of Ichthys will supply 8.4 million metric tonnes per annum of LNG to the market from the end of 2016. Ichthys also will provide 1.6 million metric tonnes of LPG per year and 100,000 barrels of condensate at peak capacity.

CB&I will provide engineering, procurement, construction and pre-commissioning for the Ichthys project's non-cryogenic tanks. The contract awarded to CB&I is valued at more than $80 million. The downstream site will require cryogenic tanks for the storage of LPG and LNG. Non-cryogenic tanks are required for the storage of condensate and for various uses onsite. CB&I will provide three condensate storage tanks and 15 smaller storage tanks for fire water, service water, irrigation water, diesel, fresh water, demineralized water, acid gas removal, wash water, heating medium, solvent make-up and a propane sphere. Two of the condensate tanks will have more than 66 cubic meters of capacity, and the smaller will hold 4,995 cubic meters of product. Project completion is scheduled for 2015.

A consortium of Laing O'Rourke Construction (ASX:LOR) (Brisbane, Australia) and Kawasaki Heavy Industries (TYO:7012) (KHI) (Tokyo, Japan) has the EPC contract for cryogenic storage tanks. The EPC will mobilize to the site in the middle of the year, and completion is scheduled for 2016.

Current work at the Ichthys downstream onshore site revolves around civil and site preparation works. Construction of the Howard Springs construction village is moving along with six concrete trucks travelling to site daily, fencing and civil works under way, and accommodation modules being delivered to the site. While the majority of key contracts have now been awarded for the Ichthys project offshore and onshore, there are still a very large number of subcontracts yet to be awarded.

CB&I has won a number of storage tank EPC contracts on similar projects in the Asia Pacific region.

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