EPIK Inks Engineering Deal for Newcastle LNG Terminal
- Business & Finance
South Korea’s Energy Projects and Infrastructure Korea (EPIK) has agreed a design, engineering and construction services deal for onshore infrastructure components of its Newcastle LNG FSRU import terminal.
An undisclosed target EPC price has been included in the agreement, executed with Australia’s Watpac, with mechanisms to ensure project competitiveness.
Furthermore, Newcastle GasDock Company, a subsidiary of EPIK, has been established in Australia to carry out the project at the Port of Newcastle, Australia.
Watpac will be supported by Mott MacDonald, an international marine and engineering infrastructure consultant with significant experience in the design and engineering of multiple FSRU projects around the world.
“This is a significant step forward for the Newcastle LNG project. 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,” Jee Yoon, EPIK’s Founder and Managing Director, said.
Watpac, a wholly-owned subsidiary of BESIX, has operations across the country, successfully delivering challenging construction and marine and civil projects. In September 2018, BESIX completed the design and construction of the Bahrain LNG import terminal located offshore Muharraq Island, which is anticipated to commence commercial operations in May of this year.
“As an Australian company, we are thrilled to be partnering with EPIK to deliver the engineering and construction services for this critical project,” said Bram Gruwez, Watpac General Manager, Marine & Civil.
“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,” Gruwez continued.
Watpac and Mott MacDonald join a growing lineup of experienced industry professionals supporting the Newcastle LNG development. In February 2019, it was announced that EPIK and Hyundai LNG Shipping had formed a strategic partnership to collaborate on FSRU projects around the world. In addition, EPIK is engaged with leading advisors and consultants, including environmental and planning support from Arup, and legal and regulatory counsel from K&L Gates, among others.
EPIK expects to place an order for the FSRU new-build with a shipyard subject to Newcastle Gasdock Company receiving all regulatory approvals for the project, which the company currently estimates to receive by early 2020.