Kentz Bags $570M Deal for Ichthys Project Onshore LNG Facilities in Darwin

Kentz Corporation Limited, the holding company of the Kentz engineering and construction group, announced Monday the award of a $570 million (AUD 615 million) contract to it's Australian subsidiary for the Electrical and Instrumentation (E&I) construction packages for the Ichthys Project Onshore LNG (liquefied natural gas) Facilities in Darwin, Australia.

This contract was awarded by JKC Australia LNG Pty Ltd (JKC), a joint venture between JGC Corporation, KBR and Chiyoda Corporation. JKC is responsible for the engineering, procurement and construction of the Ichthys LNG Project's onshore facilities, including the gas processing plant at Blaydin Point.

The contract, for which site preparation work will commence in August 2014, has a duration of 30 months and will provide more than 1,200 jobs for construction personnel. The contract scope includes the provision of services for site wide E&I installation on a unit rate re-measurable basis for the two process trains and utilities, and additional pre-commissioning and commissioning expertise.

The Ichthys LNG Project is a Joint Venture between Inpex group companies (the Operator), major partner Total and the Australian subsidiaries of Tokyo Gas, Osaka Gas, Chubu Electric Power and Toho Gas. It is expected to produce 8.4 million tons of LNG and 1.6 million tons of LPG per annum, along with approximately 100,000 barrels of condensate per day at peak.

Michael Murphy, group president Construction and TSS of Kentz, commented: "It is extremely pleasing to secure a further major construction contract on the Ichthys Project Onshore LNG Facilities; in this instance for the E&I construction contract. This adds to the recently awarded structural, mechanical and piping (SMP) contract, the temporary telecoms package that our EPC business unit is now completing, and the underground electrical and instrumentation construction contract."

"This award, which provides visibility to 2017, further strengthens our position in the Australian LNG market and extends our relationship with JKC through the development of this important asset."

Chris Warlow, managing director Australasia Region of Kentz said: "Kentz participation in the Ichthys LNG Project demonstrates how our structure and approach to business is flexible and agile and is designed to successfully service customers' varying execution strategies."

"We are now providing an extensive range of services to JKC on this prestigious project; not only directly as Kentz through both our EPC and Construction Business Units, but also through alliance and joint venture with leading Australian engineers and constructors."


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