Firms sign LNG deal for floating base

Business

TWO international companies will now cooperate for a 1.5 mtpa (metric tonnes per annum) floating LNG (FLNG) liquefaction unit in Papua New Guinea, according to Kumul Petroleum Holdings Ltd.
The facility is for KPHL.
Wison Offshore and Marine and China and American company KBR (Kellogg Brown and Root) Inc signed an agreement last week to work on the facility.
The floating LNG facility will theoretically produce, liquefy, store and transfer LNG (and potentially liquefied petroleum gas and condensate) at sea before carriers ship it to markets.
KPHL managing director Wapu Sonk said he was pleased to see a PNG-dedicated alliance between one of the world’s largest and specialised floating LNG engineering companies KBR and leading construction company Wison Offshore and Marine.
“With the current conceptual studies for the Kumul LNG project planned for completion by the end of the year, the seamless and integrated relationship between engineer and constructor is important,” Sonk said.
“Should the business case for the project prove to be viable and in the interest of the people, this alliance between KBR and Wison will give Kumul Petroleum an experienced and capable development option.”
According to a statement from KPHL, Wison had a track record in delivery of the world’s first barge-based FLNG.
Last September, Wison completed its performance test at its yard in Nantong, China. This marked for the first time in history LNG being produced on-board a floating facility.
It was also the world’s first gas trial for a floating liquefaction unit before sail-out.
In August this year, KBR announced it was awarded a contract by KPHL for conceptual development and feasibility study services for an energy hub in Kikori, Gulf.
Wison Offshore and Marine chief executive Ying Cui said: “We’re looking forward to a fruitful cooperation between Wison and KBR. We’re confident that the combination of both parties’ strengths will create the best value for our clients by providing them with more cost-effective and quality solutions to lower the overall investment of FLNG project.”
KBR president Asia-Pacific, Greg Conlon, said: “KBR is pleased to be associated with Wison Offshore and Marine in developing a significant nation-building project for PNG.”

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