Japan’s Yokohama-based Chiyoda Corp. has been awarded the engineering procurement construction (EPC) competition contract for ExxonMobil’s Papua New Guinea (PNG) LNG plant and associated facilities.

The EPC contract will include the facilities for inlet processing, treating, liquefaction, storage and loading of 6.3 million tonnes (6.93 million tons) per annum of LNG.

The contract will be awarded in late 2009, with construction to begin in 2010, according to a report from news agency EnergyCurrent.

The plant will be constructed around 20km (12 miles) northwest of Port Moresby on the Gulf of Papua.

First phase complete
Chiyoda is reported to have been one of two participants in the competition, the other being Bechtel of Houston, Texas.

The LNG facilities comprise the downstream component of the PNG LNG project. The project also includes an upstream component, which calls for the construction of gas processing facilities and pipelines.

The project entered front end engineering and design (FEED) in May 2008, with the first phase of the LNG plant FEED now complete and upstream FEED studies currently being undertaken by Eos, a joint venture of KBR and WorleyParsons.

The EPC contracts for the upstream component are also scheduled to be awarded by late 2009.

ExxonMobil’s PNG subsidiary, Esso Highlands Ltd, holds a 41.5% stake as the operator of the PNG LNG project. Other partners include Oil Search with 34%, Santos with 17.7%, AGL with 3.6%, and Nippon Oil with 1.8%.