Watpac has entered into an exclusive agreement with EPIK, a South Korean liquefied natural gas (LNG) project development company, to deliver design, engineering and construction services for the onshore infrastructure components of the company’s Newcastle LNG Floating Storage Regasification Unit (FSRU) import terminal at the Port of Newcastle.
The FSRU terminal is a vital component required for the safe storage and transfer of LNG and the completed project will be well placed to supply the booming New South Wales gas market.
The agreement between the two parties will provide a mechanism to ensure rigorous cost control throughout the project, and competitive EPC lump-sum pricing.
Watpac General Manager Marine & Civil, Bram Gruwez, said the Company was pleased to be supporting EPIK in delivering this important energy project.
“As an Australian company, we are thrilled to be partnering with EPIK to deliver the engineering and construction services for this critical project,” Mr Gruwez said.
“With our help, the Newcastle LNG import terminal will safely provide NSW with a long-term source of competitive gas supply, supporting existing and future industry and helping to grow the region’s economy.”
Watpac will be supported by Mott MacDonald, an international marine and engineering infrastructure consultancy, which has significant experience in the design and engineering of multiple FSRU projects around the world.
EPIK’s Founder and Managing Director, Jee Yoon, said the agreement was an important milestone for the project.
“This is a significant step forward for the Newcastle LNG project,” Mr Yoon said.
“Partnering with Watpac and Mott MacDonald for the exclusive provision of design, engineering and EPC services for Newcastle LNG enables EPIK to secure uncompromising engineering expertise at a competitive price point, facilitating and preserving our aggressive project development schedule.”
EPIK expects to place an order for the FSRU new-build with a shipyard by early 2020, subject to all regulatory approvals for the project being received.