Page 12 - AsianOil Week 03 2022

AsianOil OCEANIA AsianOil

DSME wins $550mn contract

for Chevron’s Jansz-Io project

PROJECTS & SOUTH Korea’s Daewoo Shipbuilding & Marine super-major said at the time that this repre-
COMPANIES Engineering (DSME) said last week that it had sented its most significant capital investment in
been awarded a contract by Chevron to build a Australia since Stage 2 of Gorgon in 2018. At the
field control station for the Jansz-Io gas project time of the announcement, the installation phase
offshore Western Australia. of Stage 2, to supply gas to the Gorgon plant from
The contract is worth an estimated four new Jansz-Io and seven new Gorgon wells,
KRW656.1bn ($550.2mn) and covers construc- was nearing completion.
tion of a gas field control station (FCS) capable of The Jansz-Io project will use subsea com-
The Jansz-Io project supplying electric power to and controlling the pression technology to maintain gas supply to
will use subsea gas field once it is operational. The facility will the Gorgon liquefaction trains and domestic gas
compression technology be built at the Okpo Shipyard in Geoje, South plant on Barrow Island. As well as construction
to maintain gas Korea, and is due to be completed by the third of the 27,000-tonne FCS, the project will require
supply to the Gorgon quarter of 2025. around 6,500 tonnes of subsea compression
liquefaction trains and The Jansz-Io field will supply gas to Chevron’s infrastructure and a 135-km submarine cable
domestic gas plant. Gorgon LNG plant on Barrow Island. The field is connecting to Barrow Island.
located roughly 125 miles (201 km) off the coast Chevron has also awarded contracts to Aker
of Western Australia, and 85 miles (137 km) Solutions, Saipem, ABB and Baker Hughes for
from Barrow Island, at water depths of around the Jansz-Io project since it announced the final
4,600 feet (1,402 metres). investment decision (FID). All of the construc-
Chevron and its partners in Gorgon sanc- tion and installation activities are anticipated to
tioned the Jansz-Io project in July 2021, saying take roughly five years to complete, giving the
it was anticipated to cost around $4bn. The project a start-up date of 2026.™

Woodside signs preliminary agreement

on Commonwealth LNG supply deal

PROJECTS & AUSTRALIA’S Woodside Energy announced on LNG shipments from the project would then
COMPANIES January 19 that it had signed a heads of agree- begin in the second quarter of 2026 – the same
ment (HoA) with Commonwealth LNG to time that Woodside’s supply agreement would
negotiate a supply deal from the latter’s proposed kick in if it is finalised based on current plans.
liquefaction terminal on the US Gulf Coast. Woodside’s announcement noted that Com-
The non-binding HoA paves the way for monwealth had been working to lower the cost
the two companies to negotiate for Woodside of LNG, with comments from both companies
to purchase 2.0mn tonnes per year (tpy) from suggesting these efforts had paid off.
Commonwealth LNG over a period of 20 years, “This HoA is testament that Commonwealth’s
starting in the second quarter of 2026. Woodside approach to lowering the cost of LNG produced in
noted that its offtake obligation could be reduced the US is gaining prominent support,” stated Com-
or even eliminated if Commonwealth lines up monwealth LNG’s founder and CEO, Paul Varello.
other buyers. Conversely, it would also have the “This HoA with Commonwealth secures
option to increase its purchases by an additional access to competitive LNG in the Atlantic Basin
500,000 tpy of LNG. and provides Woodside with the ability to build
Commonwealth LNG will have the capacity market scale through acquiring low-cost supply,”
to produce 8.4mn tpy of the super-chilled fuel. said Woodside’s CEO, Meg O’Neill.
According to Commonwealth LNG’s website, a Commonwealth says on its website that it will
final investment decision (FID) on the termi- use innovative techniques alongside a proven
nal is being targeted for early 2023, having been construction model in order achieve its goals of
pushed back previously owing to the recent drop being a low-cost supplier and reducing risk for
in energy demand – which has since reversed. investors and customers.™

P12 www. NEWSBASE .com Week 03 21•January•2022