Daily Newsletter

26 September 2023

Daily Newsletter

26 September 2023

KBR secures EPCm contract for Pluto Train 1 LNG facility in Australia

The upgrades will support the processing of up to three million tonnes of Scarborough gas annually through Train 1.

Australia-based petroleum production company Woodside Energy has awarded an engineering, procurement and construction management (EPCm) contract to US engineering services business KBR for the Pluto Train 1 Liquefied Natural Gas (LNG) facility.

Woodside is the operator of the Pluto Joint Venture.

KBR will carry out upgrade works to the facility, which is located in Karratha, Western Australia.

These works will support the facility to process approximately three million tonnes of Scarborough gas annually through Train 1.

KBR sustainable technology solutions president Jay Ibrahim said: “KBR is pleased to support Woodside in the modification of the Pluto Train 1 LNG facility to enable processing of Scarborough gas and in turn provide an opportunity to extend the life of the plant.

“KBR is committed to helping its clients navigate the energy transition, which includes gas as a key part of the energy mix. We are also excited to focus on engaging local and Indigenous businesses to support the project and proud to be creating jobs and opportunities within Western Australia.”

The Pluto LNG facility processes gas from Western Australia’s offshore Pluto and Xena gas sources. The gas is transported through a 180km pipeline to a single onshore LNG-processing train.

Pluto LNG is supported by long-term sales agreements with Kansai Electric and Tokyo Gas. Each of the companies owns a 5% stake in the project.

Woodside is also constructing a second gas processing train as part of a brownfield expansion of Pluto LNG. The Pluto Train 2 is expected to have a capacity of approximately five million tonnes per annum.

South-East Asia Construction Market Dynamics

Per GlobalData analysis, the South-East Asia construction industry in 2023 is dominated by Indonesia, though the country will see a slowdown compared to 2022 due to elevated building material prices, weak commercial property demand, high interest rates and a softening of external demand. The construction industry in the Philippines is estimated to register a AAGR of 7.2% between 2024 and 2027, supported by the government’s focus on the development of the country’s rail and road transport and energy infrastructure.

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