Daewoo E&C secures Tangguh LNG contract

South Korea’s Daewoo E&C has won a $50 million contract to carry out piping works at the BP-operated Tangguh LNG facility in Indonesia.

The contract is a part of the Tangguh expansion project which includes the construction of a third liquefaction unit.

The expansion will add 3.8 mtpa capacity to the facility located in Papua Barat Province. This will boost the plant’s total capacity to 11.4 mtpa.

Daewoo E&C said Thursday it would undergo piping works in the third LNG train’s cold sections. The works will last for about 16 months.

Chiyoda-Saipem-Tripatra-Suluh Ardhi Engineering (CSTS) consortium awarded the deal to the South Korean company. The consortium is the project’s main contractor.

BP originally expected to launch the expansion project in the third quarter of this year but the project was delayed for about a year to the third quarter of 2021.

Recent media reports suggest that the project could even see further delays due to the situation with the coronavirus pandemic.

BP is the operator of the Tangguh facility with a 37.16% share.

The other partners are CNOOC (13.90%), MI Berau BV (16.30%), Nippon Oil Exploration (12.23%), KG Companies (10%), LNG Japan (7.35%) and Talisman (3.06%).

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