JGC-Technip Energies consortium in FEED battle for Inpex’s 20 billion LNG project and FPSO

A consortium, consisting of JGC Indonesia, a subsidiary of Japan’s JGC Holdings Corporation, and Indonesian affiliates of Technip Energies, has confirmed its participation in a competitive dual front-end engineering and design (FEED) portion of work and engineering procurement and construction (EPC) estimation for an onshore liquefied natural gas (OLNG) plant and a floating production, storage, and offloading (FPSO) facility at an LNG project in the Arafura Sea, Indonesia.

The FPSO contract packages for the FEED work related to the Abadi LNG project in the Masela block revolve around a dual FEED method, involving two contractor consortia working in parallel but separately to ensure a competitive environment. Saipem was the first to confirm a FEED contract award for the FPSO module and highlighted that the operator was set on employing the same method for its onshore LNG plant contract package.

The Italian giant’s subsidiary, PT Saipem Indonesia, is at the helm of the consortium, which got the FEED award. Other participants encompass PT Tripatra Engineers & Constructors, PT Tripatra Engineering, and PT McDermott Indonesia.

The second consortium entails Technip Engineering Indonesia as the lead contractor, with Technip Indonesia and JGC Indonesia as its consortium partners. The LNG project is operated by Inpex Masela, a joint venture between Inpex Corporation and the Japan Organization for Metals and Energy Security (JOGMEC).

Marco Villa, Chief Business Officer of Technip Energies, remarked: “LNG is a critical transition fuel for global energy security. We are honored to be selected as one of the front-end engineering design (FEED) contractors for the two essential components of this ambitious development, leveraging our recognized expertise in LNG and gas FPSOs.

“Securing both contracts in consortium with JGC also reflects our client’s trust in our joint experience, expertise and ability to deliver robust and state of the art FEED packages and EPC proposals which will fully support our client’s path to final investment decision.”

JGC has now corroborated the award of a FEED contract for the OLNG plant and FPSO unit to a consortium in which its Indonesian subsidiary participates with Technip Energies. Thanks to this, the consortium will provide FEED services for the OLNG plant with an annual capacity of 9.5 million tons from two terminals, each producing 4.75 million tons, as well as EPC estimation.

This consortium will also deliver the FEED for an FPSO facility capable of receiving, processing, and storing natural gas and separating and offloading condensate, as well as EPCI estimation. While the OLNG plant’s construction site will be Yamdena Island, the FPSO facility is planned to be 170-180 kilometers southwest of Tanimbar Islands, province of Maluku in Indonesia.

Inpex estimates LNG production of 9.5 million tons per year, which surpasses 10% of Japan’s annual LNG imports. By incorporating carbon capture and storage (CCS), the operator wants to contribute to a stable long-term supply of clean energy and help improve energy security in Indonesia, Japan, and across Asia.

Shoji Yamada, Representative Director, President of JGC, commented: “This project represents a significant step forward in the development of low-carbon energy solutions, incorporating CCS technologies to deliver sustainable LNG which is in line with the direction of our energy transition strategy.

“We are proud to contribute to Indonesia’s economic growth through local engagement and job creation, and we remain committed to contribute the country’s government goal of achieving net-zero CO2 emission by 2060.”

JGC underlines that the FEED for this project will be conducted separately for the OLNG plant, FPSO facility, subsea umbilicals, risers, and flowlines (SURF), and the gas export pipeline (GEP).

The firm confirms that the FEED for the OLNG plant and FPSO facility will be conducted in parallel but separately by the two competing consortia under a dual FEED approach, enabling the estimate from the contractor consortium whose proposal is technically and commercially superior to be selected.

“We believe a decisive factor for the JGC consortium securing the FEED contract was our world-class record in the LNG and FPSO industries, as well as project execution capabilities that stand apart domestically and globally,” explained the firm.

Currently, the company is working on several large-scale LNG EPC projects, including LNG Canada, which is nearing completion, the Ruwais LNG new build project in the UAE, and a nearshore FLNG project in Malaysia.

“Through construction of LNG plants with a lighter environmental footprint, we will continue to support the energy transition and fulfill our purpose of enhancing planetary health,” underscored JGC.

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