Aker Solutions to supply MEG reclamation plant for Australia LNG project

Aker Solutions was awarded a contract by Technip to supply a mono ethylene glycol (MEG) reclamation plant for the Ichthys LNG project in Australia.

The contract value is approximately NOK 485 million ($80 million).

The scope of work includes system engineering and supply of key equipment for the MEG plant and may include some further options, the company said.

The equipment deliveries will be in 2013 and 2014.

"This contract confirms Aker Solutions' position as the world market leader for MEG reclamation technology,” said David Merle, head of Aker Solutions' process systems business.

“We are very pleased to be involved in the Ichthys LNG Project, and proud to participate in the exciting growth of the Australian oil and gas market," he added.

Management, engineering and procurement of the project will be carried out at Aker Solutions' offices in Oslo, Norway, with support from the Aker Solutions office in Perth, Australia.

MEG is used to prevent hydrate formation in subsea pipelines. It is injected at the wellhead and follows the gas and liquid flow to the gas processing facility.

The Ichthys LNG project is a joint venture between Inpex, Total and other smaller participants.

Gas from the Ichthys field, in the Browse basin approximately 200 kilometres offshore of Western Australia, will undergo preliminary processing offshore to remove water and extract condensate.

The gas will then be exported to onshore processing facilities in Darwin via an 889km subsea pipeline.

The Ichthys LNG project is expected to produce 8.4 million tpy of LNG and 1.6 million tpy of LPG, along with approximately 100,000 bpd of condensate.

The MEG reclamation plant will be located on the FPSO built by Daewoo Shipbuilding & Marine Engineering (DSME) in South Korea. Technip has responsibility for top-side engineering.

The contract was signed and booked as order intake in the third quarter of 2012, Aker officials said.

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