Svitzer Bags 10-Year Ichthys LNG Towage Gig

LNG towage provider Svitzer Australia has won a 10-year contract to provide towage and other marine services to the multi-billion dollar INPEX-operated Ichthys LNG Project in the Port of Darwin in Australia.

The contract comes with the option to extend it up to a maximum of 19 years.

The project includes some of the world’s biggest and most advanced offshore facilities, massive onshore processing facilities near Darwin and an 890 kilometre pipeline to unite them.

When operational, the Ichthys LNG Project is expected to have the capacity to produce approximately 8.9 million tonnes of LNG and approximately 1.6 million tonnes of LPG per annum.

Under the contract, Svitzer will supply four high-power Azimuth Stern Drive (ASD) escort tugs to assist LNG, LPG and condensate carriers into and out of the Port of Darwin once the project’s onshore processing facility is up and running in late 2017. The fleet will consist of two existing vessels plus two new-builds.

As well as towage, the other services Svitzer will be required to provide are: safety standby i.e. a tug that can be deployed quickly, irrespective of time or day; emergency and environment incident response; fire-fighting; support for maintenance work on INPEX’s marine infrastructure; and salvage operations within the port.

Lastly, to support the expected increase in operational activity within the Port of Darwin, Svitzer will build a new tug base at the East Arm Wharf and expand its local Darwin workforce.

According to Svitzer Australia Managing Director Mark Malone: “Having already secured contracts with Chevron and PNG-based Oil Search, we are very pleased to add INPEX to the list of global energy suppliers that rely on us to keep their vessels moving. Indeed, our concerted efforts over recent years to take advantage of new opportunities in the off-shore oil and gas industry are paying dividends.”

“This contract supports our global growth strategy of securing long term agreements for provision of advanced towage and other marine services to the oil and gas segment, and is proof of our status as preferred towage supplier to LNG terminals,” adds Chief Commercial Officer, Kasper Friis Nilaus.

Svitzer Australia has a  fleet of more than 100 tugs and other vessels operated out of almost 30 ports and terminals nationwide.