KPHL plans to build K300mil steel module fabrication facility


KUMUL Petroleum Holdings Limited (KPHL) will have its steel, mechanical and piping (SMP) module fabrication facility and construction training academy for the coming LNG and mining projects in the country.
A groundbreaking ceremony for the K300 million facility was held on Friday outside Port Moresby, near the LNG plant on the shores of Caution Bay.
Managing director Wapu Sonk said KPHL was establishing SMP facility, capable of manufacturing many of the infrastructure components required by such large-scale projects.
“We are pleased to be initiating this industrial plant, since it is important that through this facility the country can demonstrate the real ability to maximise national content in major resource developments – through fabrication of core infrastructure components and training of competent Papua New Guinean tradesmen,” Sonk said.
“The facility will be constructed on more than 60ha adjacent to the current LNG plant and close to Motukea international port. The facility will have two main production lines – for structural steel fabrication and pipeline and pipe spools fabrication, with separate module assembly areas.”
Sonk noted that in the spirit of promoting and maximising national content, construction of the fabrication facility would be carried out 100 per cent by national contractors and sub-contractors.
“KPHL will not be undertaking this huge industrial operation alone. To ensure a productive and assured operational ramp up of facility throughput, and to minimise costs, schedule and quality risk to major projects proponents, we have reached a preliminary agreement with Fabtech International, a world recognised fabrication facility operator that would see it take a leading role running the facility, in addition to other potential strategic partners to finance and own the facility.”
“Once fully operational the fabrication facility will be able to produce up to 20,000 tonnes of SMP modules into the international, regional and domestic PNG oil, gas and mining industry projects,”he said.
Sonk noted that associated with the fabrication facility would be the Kumul Construction Academy that would produce a stream of competency-based trained Job-Ready fabricators and constructors” in a range of technical trades to generate skilled employees for the oil, gas, LNG, power and mining industries.