ICN providing the right connections for Bayu-Undan

ICN providing the right connections for Bayu-Undan

A 502 kilometre subsea pipeline connects the Bayu-Undan gas facility, located in the Timor Sea, to the Darwin LNG plant in Darwin, Northern Territory. The 3.24 million tonne per annum plant will increase Northern Territory exports by $450 million per annum throughout the life of its operation.

The $3.3 billion Bayu-Undan gas field was developed and is being operated by ConocoPhillips, in partnership with Eni, Santos, INPEX, Tokyo Electric Power and Tokyo Gas. The field is expected to have a 25 year life span.

As part of this project ConocoPhillips agreed to an Australian Industry Participation (AIP) plan. ICN worked with ConocoPhillips on this plan through the identification of Australian companies to supply products and services.

To support ICN, the Australian Government provided funding through its Supplier Access to Major Projects (SAMP) program. SAMP seeks to increase opportunities for Australian industry, especially small and medium enterprises (SMEs) to participate in major projects and increase access to global supply markets for major projects. ICN administers SAMP on behalf of the Australian Government.

The project has been developed in two phases. The $1.8 billion first phase involved the production and processing of wet gas, the separation and storage of condensate, propane and butane, and the re-injection of dry natural gas back into the reservoir.

The $1.5 billion second phase involved the extraction of lean gas from the reservoir and transportation to Darwin, on Australia’s northern coast, via a 502km, 26 inch pipeline, where it is liquefied at a single-train processing plant at Wickham Point, then shipped as LNG to customers Tokyo Electric Power Company and Tokyo Gas in Japan.

ICN has been involved in this project from its beginning in 2001. As part of ConocoPhillips AIP plan, ICN identified local companies that had the capability to provide the products and services ConocoPhillips and the projects major contractors were after.

‘We highlighted to the project proponents that there are many Australian companies that have the required technology, capability and are cost effective’ says Kevin Peters, CEO, ICN Northern Territory.

‘ICN represented the capabilities of Australian suppliers at an early stage to ensure opportunities were available to them’ continued Kevin.

ConocoPhillips have regularly involved ICN in the identification of Australian suppliers for new project works and renewal of contracts. ConocoPhillips also accessed ICN’s services for the 2010 maintenance shut down for supply of local capable suppliers.

‘ICN managed almost 200 enquiries for CononcoPhillips, saving the company time and money.’ says Kevin.

In total, ConocoPhillips awarded 82 Australian companies contracts, valued at a total of $259.714 million.

ICN is Australia and New Zealand’s innovative industry matchmaker. If you’re a major project developer, ICN can put you in contact with the best suppliers.

Return to Case studies