Esso Highlands Taps Chiyoda, JGC for EPC Work

Chiyoda and JGC Corporation, both Japan's leading engineering and construction firms, jointly announced that Esso Highlands Limited, operator of the PNG LNG Project, has approved an engineering, procurement and construction ("EPC") contract award to a joint venture of Chiyoda and JGC, pending final project authorizations.

The scope of the work is for a 6.6 million tonnes per annum (MTPA) LNG plant, with two 3.3 million trains, including facilities for inlet processing, treating, liquefaction, storage, and loading. It is estimated that peak employment levels for the plant construction will be 8500 workers.

The PNG LNG Project is an integrated development that includes gas production and processing facilities, onshore and offshore pipelines and liquefaction facilities. Participating interests are affiliates of Exxon Mobil Corporation ( including Esso Highlands Limited as operator, 33.2 percent), Oil Search Limited (29.0 percent), Independent Public Business Corporation (PNG Government, 16.6 percent), Santos Limited (13.5 percent), Nippon Oil Exploration (4.7 percent), Mineral Resources Development Company (PNG landowners, 2.8 percent) and Petromin PNG Holdings Limited (0.2 percent).

Chiyoda and JGC formed a joint venture for this project under which the two aim to efficiently execute the project, combining their proven technologies and accumulated management experiences with LNG projects. The joint venture is under Chiyoda's leadership.

The Chiyoda / JGC joint venture is a collaboration of two successful and internationally-proven contractors both based in Yokohama, Japan, and both with a reputation for their strong project execution capabilities. Both companies also have unrivalled experience in LNG projects, with Chiyoda and JGC having constructed plants that have produced more than 60% of the global LNG capacity in the last 10 years.

The Chiyoda / JGC joint venture is committed to providing a high standard of safety for workers and the public and to maximizing the positive effects of the project in Papua New Guinea, including the creation and delivery of sustainable and long term benefits to local communities.

Chiyoda has for over 60 years constantly leveraged its extensive experience and far-reaching global network to give it an unrivaled advantage, and has been at the forefront of this relentless drive for innovative plant design and world-class project execution, having been involved in every part of the gas value chain since the inception of the LNG industry.


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