Ichthys Milestone Contract

2 May 2017

Ichthys Milestone Contract

JKC, whose dispute with Kawasaki Heavy Industries led to more than 800 workers being demobilised from Ichthys LNG in March, has handed EnerMech the first commissioning subcontract for the project.

EnerMech's scope of work includes nitrogen/helium leak testing of the piping systems, cooling water system passivation and degreasing of the acid gas removal units.

The engineering, procurement and construction contractor was chosen as the preferred tenderer for the specialist commissioning activities package which is said to be worth millions.

The announcement came just days after Inpex's Tokyo headquarters announced that the Ichthys project's annual LNG production capacity of 8.9 million tonnes per annum would start operations before the end of the current Japanese fiscal year, ending March 31, 2018.

That announcement opened up the possibility that the project's start date could be pushed out again from the current schedule, which is the end of September this year.

Inpex, partly owned by Japan's government, announced in September 2015 that the Ichthys venture would start production up to nine months later than originally envisaged and cost about 10% more than its original $US34 billion budget.

The Japanese multinational softened the blow at the time by saying that the production capacity at the onshore plant near Darwin would be increased by about 6% from 8.4MMtpa to 8.9MMtpa. 

SOURCE: http://www.energynewsbulletin.net

Publish Date: 
Tuesday, May 2, 2017 - 16:00
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