Ichthys LNG project contracts bagged by McDermott, BHGE

Ichthys LNG project : McDermott International and GE’s subsidiary Baker Hughes have secured contracts for the INPEX-operated Ichthys Liquefied Natural Gas (LNG) field development, located off the northwest coast of Western Australia.

The contracts have been awarded to provide joint umbilicals, risers, and flowlines (URF) and subsea production system (SPS) solution for the Ichthys gas project.

Under the contracts, McDermott and BHGE will be responsible for a new subsea well gathering system (GS4), which will be tied back to the existing central processing facility.

The contract also includes in-fill URF EPCI scope involving the development of new subsea wells tied-in to the existing gathering systems.

The Ichthys LNG project is being developed in water depths in the range from 787 to 885 feet (240 to 270 meters).

Signing of the Ichthys LNG project contracts by McDermott and BHGE. Photo courtesy of McDermott International, Inc.; Baker Hughes, a GE company.

Ian Prescott – senior vice president of McDermott Asia Pacific, commenting on the Ichthys LNG project contract, said: “McDermott’s alliance with BHGE is a combination of two leaders in subsea development. McDermott’s majority share of this award is a testament to our expertise in executing large and complex subsea EPCI projects. Our experience will ensure delivery during the next phase of this key gas field development.”

McDermott and BHGE will execute the contract from the joint Project Management and Engineering office in Perth, Australia.

Fabrication of the subsea URF equipment will be performed at McDermott’s fabrication facility in Batam, Indonesia.

BHGE will be responsible for providing the SPS scope that consists of vertical christmas trees, associated production control systems, distribution equipment, and topside controls as well as associated installation and commissioning support services.

The GE subsidiary will deliver the SPS scope for the Ichthys gas project by utilizing the Subsea Connect execution model.

Graham Gillies – BHGE regional OFE vice president on the Ichthys LNG project contract, said: “We have brought together core elements of our Subsea Connect approach, leveraging early engagement, advanced technology, and our flexible partnership model to deliver improved project economics and certainty for Ichthys LNG. This award is a true example of how the industry is changing its approach to subsea projects.”

Offshore installation of the URF and SPS equipment will begin in 2020 and be completed in 2023.

The Ichthys gas project development will be executed using advanced assets, including McDermott’s derrick lay vessel, DLV 2000.

Located about 220km off the northwest coast of Western Australia, Ichthys LNG project is one of the largest and most complex resource developments in the world.

The Ichthys gas project, which is effectively three mega-projects in one, has an expected operational life of 40 years.

In November 2018, Inpex and its partners officially inaugurated the $34 billion Ichthys LNG project.

Nearly  70% of the LNG produced from the Ichthys gas project will be delivered to Japanese customers.