Foster Wheeler Awarded EPCm Contract for World-Scale LNG Project in Australia

abarrelfull wrote on 10 Dec 2012 12:12
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June 10, 2005

Foster Wheeler Ltd. (Nasdaq: FWLT) announced today that its Australian subsidiary Foster Wheeler (WA) Pty Ltd. has been awarded an engineering, procurement and construction management (EPCm) contract with Woodside Energy Ltd. (Operator) on behalf of the North West Shelf Venture following final investment approval by its six joint-venture participants to invest A$2 billion on a Phase V LNG expansion project to be built at Karratha, Western Australia. Foster Wheeler is leading a joint venture with WorleyParsons Services Pty Ltd. to execute this project, which involves the addition of a fifth liquefied natural gas (LNG) processing train with a production capacity of 4.2 million metric tonnes a year to the existing 11.7 mtpa LNG complex.

The contract value was not disclosed. The project will be included in the company's second-quarter bookings.

"This latest award reinforces our position in LNG, which is a core business for Foster Wheeler, and demonstrates Woodside's and its five international partners' confidence in our ability to meet their business objectives. We are delighted that the North West Shelf Venture has secured final investment approval for this project to proceed and for the full EPCm contract to be awarded," said Steve Davies, chairman and chief executive officer of Foster Wheeler Energy Limited. "We have been working with Woodside (NWSV Operator) for a number of months, finalizing the project definition and achieving an early start on engineering. This will allow us to maintain the scheduled start-up date of the fourth quarter of 2008.

"Foster Wheeler has proven experience in the project management, engineering and construction of complex, world-scale projects, including the construction of LNG liquefaction facilities and offsite pre-assembly. That, combined with our partner's local knowledge, creates a high-performing team, fully focused on delivering the North West Shelf Venture's objectives: a safe, successful, and high-quality facility."

Woodside's Director of North West Shelf Ventures, Jack Hamilton, said the expansion would bring significant economic and social benefits to the remote Pilbara region of Western Australia where its gas processing facilities are located, as well as Western Australia and Australia.

"Our plant will be one of the largest single LNG complexes in the Asia-Pacific region following expansion," Dr. Hamilton said.

"The Venture's latest investment follows last year's commissioning of a fourth LNG processing train and second trunkline and, combined, these major projects will have enabled the Venture to effectively double its LNG capacity in approximately four years."

The expansion project also includes an additional fractionation unit, acid gas recovery unit, boil-off gas compressor, two new gas turbine power generation units, a second loading berth and a new fuel gas system compressor.

• Foster Wheeler Awarded EPCm Contract for World-Scale LNG Project in Australia

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