Saipem-led JV wins onshore LNG project in Mozambique
June 10, 2019 – JV consists of Saipem alongside US-based McDermott International and Japan’s Chiyoda Corporation
Italy’s Saipem has won a joint venture (JV) engineering, procurement, and construction (EPC) contract for an onshore Liquid Natural Gas (LNG) project in Mozambique. The firm will work beside US-based McDermott International and Japan’s Chiyoda Corporation for the engineering and construction of the project.
According to a statement from Saipem, scope of work will include the construction of two Natural Gas Liquefication (LNG) trains and other associated infrastructure such as storage tanks and export jetty facilities. The LNG plant will produce a total capacity of 12.88 million tonnes of liquefied gas per annum.
Saipem added that it will operate as the leader of the JV, with the company’s share of the project valued at $6 billion while McDermott’s share is approximately $2 billion. The contract has been executed by Anadarko Mozambique, a wholly owned subsidiary of Anadarko Petroleum Corporation. Additionally, Saipem stated that The EPC contract is subject to a full Notice to Proceed which Anadarko is expected to issue after the Final Investment Decision.
“With this project, we will strengthen our presence in East Africa, confirming Saipem’s role among the leaders in the LNG market for the energy transition,” said Stefano Cao, Chief Executive Officer at Saipem.
He added: “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.”
Meanwhile, Samik Mukherjee, McDermott’s Group Senior Vice President for Projects stated: “The Area 1 Mozambique LNG project will build on McDermott’s industry-leading experience and demonstrate our ability to deliver comprehensive EPC solutions globally for world-scale LNG developments.”
McDermott and Saipem have established a new office in Milan, Italy from where a team from both companies will lead the project management, engineering, and procurement before sharing on-site construction management responsibilities, McDermott said in the statement. It added that while it will perform engineering from both London and India, Chiyoda will only provide advisory services for the JV.