30-04-2012

GE, CH2M HILL and UGL to provide power generation for Ichthys LNG project in Australia

UGL Limited today announced that in a 50:50 joint venture with EPC firm CH2M HILL it has been awarded a $550 million contract (total JV) by JKC Australia LNG Pty Ltd (a company established by a joint venture between JGC Corporation, KBR and Chiyoda Corporation) for the construction of a combined cycle power plant for the Ichthys liquefied natural gas (LNG) project in the Northern Territory.

As part of the agreement, GE will engineer and supply gas turbines, steam turbines and heat recovery steam generators for the $34 billion Ichthys project. The CH2M HILL-UGL Joint Venture will design and supply the balance of plant based around the GE technology as well as undertake the complete construction of the project.

GE’s gas and steam turbine technology will efficiently and reliably generate electricity for the onshore facility based at Blaydin Point, Darwin, enabling it to produce more than 8 million tons of LNG each year. The onshore facility will be linked to the offshore drilling and processing facilities in the Browse Basin off Western Australia by an 885-kilometer undersea pipeline.

UGL’s Managing Director and CEO Richard Leupen said: “This is a significant win for UGL and demonstrates our consistent ability to leverage our engineering capabilities, in this instance our power generation expertise, to deliver work on significant resources projects. We look forward to partnering with CH2M HILL and combining our skills to execute this important LNG project.

“Securing this cornerstone project is also a reflection of the strength of CH2M HILL and UGL’s longstanding relationship with GE across our engineering businesses. Strong growth momentum in gas turbine generation facilities continues to be supported, underpinned primarily through private investment from the mining sector. Both CH2M HILL and UGL remains well positioned to capture future growth in this industry across Australia and New Zealand.”
This milestone project follows on from the successful installation of the Tamar Valley Combined Cycle Power Plant by UGL in 2009 and the Darling Downs Combined Cycle Power Plant completed by GE and CH2M HILL in 2010.

GE will supply five GE Frame 6B gas turbines and three SC4 single-flow steam turbines that will provide 500 megawatts of installed power capacity for the facility. Design, procurement and fabrication for the combined cycle power plant works are expected to commence immediately, with an on-site commencement in mid-2013 and completion expected by the end of 2016.

John Anderson, senior region executive, Australia and New Zealand, GE Energy, said the new deal demonstrates GE’s long-term commitment to the growth of the LNG sector in Australia. “GE has a long history in the oil and gas sector, and we have been able to capitalize on our expertise in gas turbines and subsea production for many of the world’s leading LNG projects.”

“We have an extensive track record in providing reliable and efficient gas turbine power plants, as well as the ability to offer a complete customized solution for power generation on the Ichthys project,” Anderson said. “Our gas and steam turbines are able to cope with the wide range of fuel gases encountered on a LNG processing train while meeting and exceeding emissions standards.”

In January 2012, GE Oil & Gas announced  it had received contracts totaling nearly $1 billion to supply a wide range of rotating equipment and subsea production systems for the Ichthys LNG project.

The GE Frame 6B Gas Turbine is one of the most widely used gas turbines ever manufactured. More than 1,100 of these units are in service or on order worldwide and have accumulated more than 60 million operating hours in a wide range of applications. The steam turbines will be manufactured in the U.S. before being shipped to Italy for testing in 2013 and then to Australia for installation. The gas turbines are manufactured in Belfort, France.