Saipem, McDermott win EPC work on Mozambique LNG project

Saipem, McDermott win EPC work on Mozambique LNG project
Saipem will work on an LNG project [representational image].
Published: 5 June 2019 - 5:05 a.m.
By: Neha Bhatia

Italian engineering, procurement, and construction (EPC) contracting giant Saipem, in a joint venture with America's McDermott International and Japan-headquartered Chiyoda Corporation, has reached an agreement with Area 1 Concessionaires – a wholly owned subsidiary of Anadarko Petroleum Corporation – for a contract to engineer and construct an onshore liquefied natural gas (LNG) project in the East African nation of Mozambique, with its share as leader of the JV accounting for $6bn.

The CCS JV has been incorporated in Italy to implement the project backed by Anadarko Petroleum Corporation, which operates Offshore Area 1 and is also front-runner of a venture including ENH subsidiary, ENH Rovuma Area Um; Mitsui E&P Mozambique Area 1; India-owned ONGC Videsh; Beas Rovuma Energy Mozambique; BPRL Ventures Mozambique; and PTTEP Mozambique Area 1 Limited.

Saipem's contract with McDermott and Chiyoda covers the construction of two LNG trains with a total nameplate capacity of 12.88 million tonnes per annum (MTPA), as well as all necessary associated infrastructure, storage tanks, and export jetty facilities.

The EPC contract is subject to a full notice to proceed, which Anadarko Petroleum Corporation is expected to issue after the final investment decision.

Commenting on the contract, Saipem's chief executive officer, Stefano Cao, said: “After many years of dedication to this project, we are very happy to announce that we have reached full agreement for the contract.

"We congratulate Anadarko and its co-venturers for the achievement and grateful for the confidence demonstrated toward our CCS JV, and look forward to mobilising our teams to site after Anadarko issues notice to proceed.

"A project of such a scale will contribute significantly to the economic growth of Mozambique as a new pole in the west-east energy routes and, as Saipem, we are proud of our substantial contribute to these future developments,” Cao added.

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