World first FLNG providing growth for local business
The Prelude FLNG development is located in the Browse Basin, approximately 475km north-east of Broome, in Western Australia.
The project will be the first deployment of Shell’s FLNG technology and will bring significant benefits to Australia, creating hundreds of jobs and opportunities for Australian businesses.
The Prelude FLNG will produce 3.6 million tonnes per annum (mtpa) of LNG, 1.3 mtpa of condensate and 0.4 mtpa of LPG. The FLNG facility will be moored near to the Prelude field location for approximately 25 years and has been designed to withstand severe weather.
Shell is the operator of Prelude FLNG in joint venture with INPEX (17.5%), KOGAS (10%) and OPIC (5%), working with long-term strategic partners Technip and Samsung Heavy Industries (the Technip Samsung Consortium).
ICN in Western Australia has been working closely with this project since 2009, helping maximise Australian industry participation by putting the project buyers in contact with the best Australian companies.
In September 2012 the Prelude FLNG project procurement team in Paris asked ICN to identify capable Australian suppliers to provide forged steel components for the project’s Water Intake Riser system, a system which is used to convey cooling seawater to the FLNG facility.
In October 2012, ICN nominated NSW manufacturer, Overall Forge as a company that had the capability to take on this work. The company went on to tender for this package and was awarded the $4m contract in September 2013.
‘This was a great win for Overall Forge’, said ICN consultant, Mark McCarthy. ‘Having worked with the company before, we knew they would be a great fit for the project and nominated them for the work package’.
The majority of the work is being completed in Overall Forge’s facility in Albury, NSW, with some of the machining work being subcontracted to a local manufacturer in Chipping Norton.
‘ICN was instrumental in Overall Forge bidding and subsequently securing this prestigious contract’, said Craig Roache, Business Development Manager, Overall Forge. ‘Having identified our company as a local manufacturer with the potential to do the work, ICN passed on our credentials to the Technip Samsung consortium, who then contacted
us direct’.
Overall Forge’s work on Prelude FLNG could be just the start of things to come, as there is a potential to have repeat orders on future Shell FLNG projects.
Along with the success of Overall Forge’s contract other Australian businesses have also won contracts to support the prelude drilling campaign and the design and construction of the prelude onshore supply base in Darwin.
ICN will continue to work with the project through its operation and maintenance phase, which will generate significant opportunities for Australian suppliers. Over 200 contracts will be tendered for this phase and Shell expects a substantial number of these to be won by local firms.