2020 RPME Top 30 EPC Contractors: JGC Corporation

Published: 27 April 2020 - 2:30 a.m.
By: Martin Menachery

In October 2019, a consortium of JGC Corporation of Japan, Fluor and TechnipFMC of France was awarded an engineering, procurement and construction contract by Mozambique Rovuma Venture (MRV) for its Mozambique Rovuma Liquefied Natural Gas (LNG) Phase 1 Project in Cabo Delgado, Mozambique, with an immediate release of a limited notice-to-proceed. The project will develop Area 4 of the ultra-deep Rovuma Basin, a giant offshore natural gas field with up to 15 trillion cubic feet of natural gas located off the coast of Mozambique.

MRV is an incorporated joint venture owned by Eni, ExxonMobil and China National Petroleum Corporation (CNPC), which holds a 70% interest in the Area 4 exploration and production concession contract. Galp, KOGAS and Empresa Nacional de Hidrocarbonetos E.P. each hold a 10% interest. The project team will be located in Farnborough, UK; Paris, France; and Yokohama, Japan.

In July 2019, JGC Corporation announced that it has been awarded a front-end engineering and design (FEED) contract under a triple FEED competition scheme for the LNG plant for marine fuel that Total E&P Oman Development, a 100% subsidiary of the French company Total, is planning in the Port of Sohar in Oman, in partnership with Oman Oil Company. This project consists of FEED services to construct a new medium-scale LNG plant with an annual LNG production capacity of 1,000,000 tonnes in Sohar, one of the largest industrial zones in the Middle East, approximately 200 kilometres to the west of Muscat, the capital of Sultanate of Oman.

Growing demand is expected for marine fuel since the International Maritime Organization (IMO) has introduced environmental regulation for maritime fuel in 2020. During the bidding process, it was highly evaluated that JGC experienced many LNG plant construction worldwide and delivered proposal making use of the small/medium-scale LNG plant concept, which is promoted under JGC's medium-term business plan – Beyond the Horizon. Currently, JGC is executing a total of three LNG plant construction projects, including a large-scale LNG plant in Canada, as well as FLNG (floating LNG) plants off the coast of Malaysia and off the coast of Mozambique.

Going forward, as the world's foremost LNG contractor, JGC will continue to develop its strong business activities in the field of small/medium-scale LNG plants construction in addition to conventional, large-scale LNG plants. A contract for the gas pipeline/gas storage tank construction project in Awali, Bahrain, was awarded to JGC Corporation in October 2016, planned by the Bahrain National Gas Expansion Company. The project is scheduled for completion in September 2018. The value of the lump sum turnkey basis contract is approximately $91.41mn.

JGC Corporation announced in January 2016 that it has received a contract to build the gas processing facilities in Bahrain. The value of the contract is $365.6mn. The firm has been engaged in providing EPC services for plants and other facilities to customers in Japan and over 80 overseas countries. JGC Corporation, formerly Japan Gasoline Co, is a global engineering company headquartered in Yokohama, Japan. The company was founded on 25 October 1928. In 1976, it changed its original name from Japan Gasoline Co to JGC Corporation.

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