Aker Kvaerner and IHI JV Awarded $680M LNG Contract

The joint venture of Aker Kvaerner and IHI, Inc. has been awarded a contract to provide engineering, procurement and construction (EPC) for an onshore liquefied natural gas (LNG) import and regasification terminal in the United States Gulf Coast region for Gulf LNG Energy, LLC. Valued at U.S. $680 million, the contracted EPC work began in November 2007 with a Limited Notice to Proceed. A full Notice to Proceed with the full project scope was provided on Feb. 7, 2008 with a planned completion date of Q2 2011.

"We are excited to move forward on the engineering and construction phase of this Gulf Coast region LNG regasification terminal. Being selected for this project demonstrates the confidence that our customers have in the experience and abilities of the Aker Kvaerner and IHI team," said John Siffert, president of Aker Kvaerner's LNG business. "We are committed to the completion of the project to the satisfaction of our client, in a timely and safe manner."

Aker Kvaerner, Inc., a principal LNG facilities engineering and construction management firm, and IHI Inc., a market leader in the design and manufacturer of LNG storage and processing systems, are the contract parties responsible for delivering the project. Directed from Houston, Texas, design and engineering for the project will involve approximately 125 personnel from the joint venture. In addition, Aker Kvaerner Industrial Constructors, Inc. will employ a peak construction labor force of approximately 650 to complete the project.

The LNG receiving terminal project will consist of two 160,000 m3 full-containment LNG tanks and a vaporization system. Once complete, the facility will process approximately 1.5 billion standard cubic feet of gas per day, providing the Gulf Coast region with much-needed clean burning natural gas.